The government has tapped state-run Food Terminal Inc. (FTI) to directly procure onions in a bid to stabilize the market and avert a potential slump in farmgate prices as the harvest season approaches its peak.

In a statement, Agriculture Secretary Francisco Tiu Laurel said he ordered FTI to begin purchasing onions as early as this week as a “preemptive strike” against the anticipated price slump.

As a first step, Tiu Laurel said he has asked FTI to lock in cold storage capacity in Nueva Ecija, the country’s onion capital, to prepare for the purchases.

“They’ve secured space for 50,000 28-kilo bags, and we can expand that if needed,” he said, noting that local production typically peaks in the months of March and April.

Based on estimates from the Department of Agriculture (DA), Nueva Ecija produces more than half of the country’s onions, with the municipality of Bongabon accounting for roughly 15 percent of the vegetable’s total output.

“That makes the province both the engine of supply and the flashpoint for volatility when volumes surge,” the DA said.

Following reports that farmgate prices of onions had fallen to around ₱30 per kilo, FTI President Joseph Lo said prices are now climbing to as high as ₱45 per kilo.

“Our goal is to buy at prices that are fair to farmers, at levels that are enough to make onion farming profitable and sustain their planting intentions,” said Lo.

Asking FTI to procure onions directly from farmers was the DA’s response to concerns that the supposed influx of onions is to blame for the decline in farmgate prices.

However, the agency said inspections of cold storage facilities revealed limited stocks of imported onions, suggesting that other market factors are at play.

Nonetheless, the DA has assured farmers that imported red and white onion stocks are limited and are expected to be largely depleted by the peak of the harvest.

“Whether 50,000 bags, equivalent to around 1,400 metric tons, will be enough to meaningfully anchor prices remains to be seen. But the signal to the market is unmistakable. The government is prepared to defend farmgate levels, and to intervene early,” it said.

After Nueva Ecija, Tiu Laurel said FTI will also look into other leading onion-producing areas such as Occidental Mindoro, Pangasinan, and Cagayan Valley.

He said this will be supported by efforts to build more cold storage facilities across the country to extend the shelf life of vegetables and keep supply and prices stable throughout the year.