The Department of Trade and Industry (DTI) has been strongly urged to consider allowing the importation of onion by legitimate traders to address the high cost and shortage of supply of this important food spice in Filipino households.
George T. Barcelon, president of the Philippine Chamber of Commerce and Industry (PCCI), said the DTI should consider the trade aspect of onion or the need to determine sourcing of onion whether it be locally produced or imported.
“Food prices have a big impact on inflation and has to be dealt with. If DTI were to allow importation with quantifiable restriction, traders with no cold storage would take the opportunity to make certain reasonable profits,” he said. Inflation in December climbed to 8.1 percent, highest in 14 years, with food, particularly vegetables pulling up prices.
While not discounting the probability of hoarding and cartel operations in the onion industry and among traders, Barcelon said that onion is highly perishable. “Yes, there may be hoarders but onion will spoil in a short period without cold storage,” he emphasized.
It is also clear, he said that the output of local onion farmers is limited and cannot meet market demand specially during the holiday season.
Thus, Barcelon cited the need to allow importation of onions by legitimate traders where price can be lowered factoring all taxes and duties.
He noted that supply and demand as with any products determines the price, which can be lower if there is enough supply.
Barcelon further pointed out that compared with onion prices around the world, “it's obvious some traders are making unwarranted high profits at the expense of consumers.”
“If DTI would announce allowing legitimate importation without hazzle from any government agency, you'd find entrepreneurs willing to source from other countries,” he said.
So far, the DTI price monitoring and enforcement teams already included red onions in their regular inspection of items covered by the suggested retail prices (SRP).
DTI Secretary Alfredo E. Pascual fielded the agency's price monitoring teams beginning on Dec. 30, 2022 to assist the Department of Agriculture (DA) in checking suggested retail prices (SRP) of red onions in public wet markets in the National Capital Region and will continue to other regions.
The DTI price monitoring for red onion is in response to the call of the President Ferdinand Marcos, Jr. and DA Circular No. 12 dated 29 December 2022, which places an SRP of P250 per kilogram of red onion in public wet markets. The DA circular regarding the SRP on red onions is in effect until the first week of January 2023.
Pascual directed the DTI teams to include red onions in the basket of goods being monitored by the DTI to assist DA in ensuring that prices of the agricultural products remain affordable for consumers especially during the holiday season.
“DTI is calling on sellers to keep their prices within the suggested retail prices. We are exerting every effort to ensure that prices of basic necessities and prime commodities are within reach of Filipino consumers,” Pascual said.