Philippines' emergency onion imports unlikely to tackle soaring prices: Officials

MANILA - Philippine onion importers have applied for permits for just a quarter of

the approved emergency purchase

of up to 21,060 tonnes, which agriculture officials said may not bring down exorbitant prices that have added to soaring inflation.

Onions are widely used in many local dishes and the cost has more than quadrupled in four months.

In December, it hit as high as 700 pesos (S$17) per kilogramme in Manila markets. It was among the highest in the world and contributed to double-digit food inflation.

Food prices helped push the consumer price index last month up 8.1 per cent from a year earlier, a 14-year high, with the central bank warning of continued pressure and signalling further interest rate hikes in the first half of 2023.

The Bureau of Plant Industry has cleared the importation of about 25 per cent of the approved volume, which must be shipped in not later than Jan 27, agriculture officials told a Senate hearing on Monday.

“Even if we import the entire approved volume, even that will not have a substantial impact on prices,” said Mercedita Sombilla, agriculture undersecretary for planning.

The Philippines had been hit by onion production shortfalls in recent months, as farmers were discouraged to boost planting due to competition with imported supply, according to farmers’ groups.

Government data showed prices have eased over the past two weeks, with the most widely-consumed red onion selling at 350-550 pesos per kg as of Friday, still much higher than the 2022 low of 70 pesos in April.

President Ferdinand Marcos Jr, speaking to reporters on Sunday en route to Davos for the World Economic Forum, said the country was forced to import onions amid a wide gap between supply and demand.

He blamed the country’s long-running reliance on food importation, which discouraged local farmers, for the chronic domestic shortfalls involving many commodities, including the staple rice. REUTERS