Department of Agriculture Imposes P120/kg Price Cap on Onions to Stabilize Holiday Market

The Department of Agriculture (DA) has implemented a maximum suggested retail price (MSRP) of P120 per kilogram for both red and white onions beginning December 1. This measure aims to control the steep rise in onion prices as the holiday season approaches.

In a recent statement, the DA explained that the price ceiling seeks to "restore order" amid inflated retail prices driven by limited supply and heightened demand. Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that current prices, reaching roughly P300 per kilogram in some markets, are "far from reasonable pricing."

"While there may be some tightness in supply, it does not justify runaway prices," Secretary Laurel stated, noting that delays in import shipments have contributed to price pressure but should not cause prices to exceed twice the normal levels.

With imported onions costing approximately P60 per kilogram upon landing, the DA clarified that the P120 cap preserves "reasonable margins" for importers, traders, logistics providers, and retailers.

Junibert De Sagun, Director of the DA-Agribusiness and Marketing Assistance Service (AMAS), reported that retailers generally support the price ceiling following recent consultations. However, they requested that the ceiling take effect only after new shipments are delivered at about P90 per kilogram to avoid losses on stock bought at higher prices.

Food Terminal Inc. (FTI) has committed to supplying imported onions at P90 per kilogram on a cash-on-delivery basis, with shipments expected within two weeks.

The DA is also addressing the slower utilization of sanitary and phytosanitary import clearances (SPSICs) for red onions compared to yellow onions, which has contributed to price increases. The Bureau of Plant Industry has issued SPSICs for 69,040 metric tons (MT) of red onions and 42,261 MT of yellow onions. From August to November 20, importers used 443 permits for 21,145 MT mainly for yellow onions, while only 192 permits equivalent to 12,824 MT were used for red onions.

Unused permits will be revoked and redistributed, including to FTI, to expedite onion arrivals. All SPSICs must be utilized by January 15, 2026, to prevent clearance stockpiling and avoid overlap with the domestic harvest season.

As of November 30, price monitoring by the DA indicated that retail costs in Metro Manila markets remain elevated:

• P304.44/kg – local red onion
• P254.29/kg – imported medium red onion
• P144/kg – imported large red onion
• P148.89/kg – imported medium white onion
• P128/kg – imported large white onion

The DA underscored that the P120 MSRP is intended not only to temporarily curb prices but also to stabilize the supply chain during the Christmas season, ensuring fairness to farmers, traders, and retailers alike.