A little over a week after its initial implementation, the Department of Agriculture (DA) is increasing the maximum suggested retail price (MSRP) for imported red onions from ₱120 to ₱150 per kilo following a spike in prices in the countries of origin.

Agriculture Secretary Francisco Tiu Laurel said the new price cap will take effect on Thursday, Dec. 11, to prevent further hikes in produce prices ahead of the holiday season.

When the agency implemented the MSRP of ₱120 per kilo on Dec. 1, Tiu Laurel said the landed cost for red onions was only around ₱60 per kilo.

This, however, has since jumped to ₱80 per kilo following price hikes from leading sources of the commodity, including China, the Netherlands, and India.

“If we're going to compute it, it doesn't seem to match the ₱120 that we set just recently. So now, we're adjusting the MSRP of red onions to ₱150 from ₱120,” Tiu Laurel said in an interview.

The secretary said his agency also took into consideration the weakening of the Philippine peso against the United States (US) dollar in forming the new MSRP.

The peso dropped to its lowest-ever level of ₱59.22 to the US dollar on Tuesday.

“Things are dynamic, so we have to adjust as we see that it's necessary,” said Tiu Laurel.

The MSRP for white onions, set at ₱120 per kilo, will be retained.

According to the DA’s daily market monitoring, Tiu Laurel identified red onions as the biggest concern for the agency, with retail prices reaching as high as ₱300 per kilo.

Given the landed cost of about ₱80 per kilo, the excessive markup to ₱300 per kilo indicates that some traders and retailers may be engaging in profiteering.

Tiu Laurel noted that due to the limited supply of locally red onions in the country, approximately 90 percent of the produce seen in markets today came from abroad.

But some retailers are labeling the products as local instead of imported to justify the higher price.

“The businessmen always have a tactic to try to get more profit. That's why what I'm saying is to educate our consumers that this is what's happening in the market,” Tiu Laurel said.

The current prevailing prices of red onions in Metro Manila markets is ₱285.50 per kilo, as of Dec. 10.

Meanwhile, imported medium-sized red onions sell at ₱217.40 per kilo, while the imported large red onions fetch at ₱128.97 per kilo.

To prevent profiteering, Tiu Laurel said his agency will soon impose strict labeling rules that will lead to filing an appropriate case against the erring retailer or trader.

This, he said, will be complemented by the proposed maximum retail price (MRP) for imported agricultural goods.

Tiu Laurel said his department is currently proposing this policy to several lawmakers in Congress.