The Department of Agriculture–Bureau of Plant Industry (DA-BPI) has ordered onion importers to explain why permits for red onion shipments are being used far more slowly than those for yellow onions—a discrepancy officials say is contributing to the recent spike in retail prices.
Vegetable vendors report that tight supply has pushed red onion prices above P300 per kilo fueling consumer frustration ahead of the holiday season, when demand typically surges.
“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. said.
He added that President Ferdinand Marcos Jr. had directed the agency to maintain adequate supply to stabilize prices and avoid a repeat of past shortages that sharply inflated food costs.
Secretary Tiu Laurel said import permits that have not been used will be cancelled and distributed to other importers, including the Food Terminal Inc., to fast track onion importation to ease supply tightness and lower prices.
Landed cost of onion imported from China is around P60 per kilo.
Earlier, the DA issued Sanitary and Phytosanitary Import Clearances (SPSICs) covering 69,040 metric tons (MT) of red onions and 42,261 MT of yellow onions. The BPI has so far granted 1,202 SPSICs for red onions and 751 for yellow onions.
However, usage data shows a pronounced lag for red onions. Since August through November 20, importers have used 443 permits covering 21,145 MT, mostly for yellow onions. By contrast, only 192 red onion SPSICs have been consumed, bringing in 12,824 MT since September until November 20.
All SPSICs must be used by January 15, 2026, a deadline the DA set to prevent importers from hoarding clearances to influence supply. The timing is also intended to ensure that imported onions do not overlap with the domestic harvest, which could depress farm-gate prices and hurt growers.
Monthly consumption highlights the urgency: demand runs at around 4,000 MT for yellow onions and 17,000 MT for red onions.
BPI director Gerald Glenn Panganiban said he has ordered intensified market monitoring, noting that warehouse reports show low farm-gate and wholesale prices—conditions that should not justify the steep spikes seen in retail markets.
He said the BPI is coordinating with the DA Inspectorate and Enforcement Office and the Agribusiness and Marketing Assistance Service to continuously monitor and surveil the market to ensure stable supply, fair pricing, and food safety.
