Manila: The Department of Agriculture (DA) on Monday intensified targeted onion procurement to support local growers amid farmgate price pressures. This move aims to assist onion farmers in Occidental Mindoro through accelerated market intervention by the Food Terminal Inc. (FTI) in collaboration with private sector partners.
According to Philippines News Agency, DA Secretary Francisco Tiu Laurel Jr. emphasized the critical nature of this initiative to stabilize price fluctuations without distorting the market. He stated, "We must strike a careful balance - ensuring farmers earn fairly while protecting consumers from price spikes." Laurel highlighted the strategic importance of buying and storage to support producers during periods of oversupply, while maintaining sufficient buffers to prevent sharp increases in retail prices.
Private investors have already procured approximately 6,000 bags of onions in Occidental Mindoro at PHP32 to PHP35 per kilogram, significantly higher than the prevailing farmgate price of PHP22 per kg, yet reasonable given the average production cost of PHP18 to PHP24 per kg. FTI Sales and Distribution Manager Edoard Medalla called on the private sector to expedite the procurement of local onions, noting that while FTI's intervention remains limited, these efforts are crucial to driving up farmgate prices and preventing future supply shocks.
Medalla further commented, "We cannot guarantee we will buy all production, but we will try to support prices around PHP35 a kilo, depending on quality and storage availability." The estimated onion output in Occidental Mindoro stands at 3.2 million bags. The agency is also coordinating with experts outside the province to secure storage and ensure the quality of the procured harvest.
"This is the first time we entered the onion market in Mindoro, so we have to rely on experts we have engaged in Nueva Ecija to maintain quality," Medalla added. In Nueva Ecija, about 110,000 bags have already been procured at an average price of PHP40 per kilogram. Furthermore, the FTI has earlier secured a 190,000-bag capacity for cold storage in Nueva Ecija.
