DA sees price manipulation behind high onion prices

The Department of Agriculture (DA) on Tuesday said it is also looking at price manipulation as one of the reasons for the high cost of onions in public markets.

Interviewed on GMA News’ Unang Balita, DA deputy spokesperson Rex Estoperez said he received reports that certain “negotiations” happen in Moncada, Tarlac and Bongabon, Nueva Ecija wherein agents sell standing crops of onions to the highest bidder.

“At P350… i-times two mo ‘yan, patungan ng traders hanggang sa retailers, P700 pa rin. Kung mababa ang presyo sa ating mga farm gates, sana masawata natin itong pagtaas presyo doon sa ating mga traders,” he said.

(If the onions are P350, they are still sold for P700 in market if multiplied by two by traders and retailers. If the price is low at our farm gates, I hope we can stop the prices from increasing due to the traders.)

“Pero ‘yung manipulation, pumapasok ho do’n sa ano eh… Ito ang pagkukulang ng Department of Agriculture, 'yung sa supply chain. ‘Yung may ahente na, may traders pa. Ang sasabihin nila na kulang ang gastos nila sa pag-transport ng sibuyas from the production area to the market. Mukhang ‘yun ang malaki po,” he added.

(This is where the manipulation comes in. The DA has lapses in the supply chain. They have agents and traders, and say they need money to transport onions from the production area to the market. That seems to be the big problem.)

Senator Cynthia Villar on Monday said a cartel could be behind the high prices of onions in local markets, citing a 2013 investigation that showed that there is an onion cartel that has "complete control" over the supply in the country.

Due to the continuous rise in prices in public markets, the DA on Saturday recommended importing 22,000 metric tons of onions. This volume should arrive before the peak harvest that will start in March, according to Estoperez.

In a Super Radyo dzBB interview, Estoperez said they already reduced the 22,000 metric tons to 21,060 metric tons, and requested the imported onions arrive on an earlier date.

“Mga 940 metric tons ang binawas. Tsaka ‘yung sinabi namin kahapon na basta dumating ‘yan by end of January and not later than the first week of February, mukhang binago din ‘yun. Ginawang, it must arrive on January 27,” he said.

(About 940 metric tons were deducted. Also, what we said yesterday that as long as they arrive by the end of January and not later than the first week of February, was also changed. The imported onions must now arrive on January 27.)

This came after several farmers expressed worry over the government's looming importation of onions which may coincide with the harvest season in February. —KBK, GMA Integrated News