DA probes slow imports of red onions as prices soar past PHP 300 per kilo

The Department of Agriculture (DA) said it has ordered importers to explain the slow arrival of red onion shipments, warning that unused import permits will be canceled and reallocated as retail prices climbed above PHP 300 per kilo ahead of the holiday season.

The Bureau of Plant Industry (BPI) is reviewing the utilization of Sanitary and Phytosanitary Import Clearances (SPSICs) after data showed that permits for red onions are being used at a much slower pace than those for yellow onions, despite significantly higher demand for the red variety, the DA said.

“We want to know the status of those import permits — if they plan to use them. If not, we will cancel the permits and award them to other importers to ensure sufficient domestic supply, especially at this time of year,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. was quoted as saying in a statement.

The DA earlier issued SPSICs for up to 69,040 metric tons (MT) of red onions and 42,261 MT of yellow onions.

As of Nov. 20, importers have only used 192 of the 1,202 SPSICs issued for red onions, bringing in 12,824 MT since September.

According to the DA, the slow utilization of permits for red onions comes amid higher demand, with monthly consumption estimated at around 17,000 MT.

The DA said vegetable vendors have reported tight supply in markets, with red onion prices surging past P300 per kilo.

Mr. Laurel said import permits that are not being used will be canceled and reassigned to other importers, including the state-run Food Terminal, Inc., to speed up onion importation and help ease supply pressures.

Sought for comment, Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., said that while onion prices normally increase as the holiday season approaches due to tight supply, importers may also be deliberately delaying shipments.

“I think traders are trying to leverage for good prices, but I think they can do this only up to December. Shortage of supply could be deliberate to bring up prices,” he told BusinessWorld via Viber.

He added that some cold storage facilities still hold imported and local onions and will only release them starting next week.

According to the DA, all SPSICs must be used by Jan. 15, 2026, a deadline set to prevent importers from hoarding clearances to influence supply and prices.

The schedule is also designed to ensure that arrivals of imported onions do not overlap with the domestic harvest, which could depress farmgate prices and hurt local farmers. — Vonn Andrei E. Villamiel