Red, white onion MSRP set at P120 per kilogram
THE Department of Agriculture (DA) said it imposed a maximum suggested retail price (MSRP) of P120 per kilo for both red and white onions starting today, Dec. 1.
In a statement, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the limited supply caused by delayed import arrivals does not justify current market prices.
“There may be some tightness in supply, but that’s no excuse for runaway prices. At current market levels, it already smacks of profiteering,” he said.
The Agribusiness and Marketing Assistance Service (AMAS) found that retail prices are hitting P300 per kilo, nearly triple what the DA believes is a fair market price.
Mr. Laurel said that the landed cost of onions is around P60 per kilo, which means that a P120 ceiling still leaves room for reasonable margins. “At P120, everyone, from importers to logistics providers to retailers, still earns a decent profit,” he said.
AMAS Director Junibert E. de Sagun was quoted in a statement as saying that onion retailers were generally receptive to the proposed MSRP during an earlier consultation, provided that the cap be implemented only once new shipments arrive, to allow them to sell current inventories purchased at higher prices.
Last week, the DA said it ordered importers to explain the slow arrival of red onion shipments after a review revealed low utilization of import permits for red onion despite high demand.
According to the DA, all issued import permits must be used by Jan. 15, 2026, a deadline set to prevent importers from hoarding clearances to influence supply and prices.
The DA said the price ceiling imposed on domestically grown onions will remain subject to further consultation and adjustment should farmgate prices rise sharply. — Vonn Andrei E. Villamiel
You May Also Like
USDC Treasury just minted 200 million USDC on the Ethereum chain
Today’s Wordle #1630 Hints And Answer For Friday, December 5
