Marcos: Onion prices spiked in early 2023 due to hoarding

President Ferdinand "Bongbong" Marcos Jr. on Tuesday blamed hoarding for the high price of onions at the start of the year.

In an interview on the sidelines of the Department of Agriculture's 125th anniversary, Marcos said syndicates even kept cold storage from being used by other producers.

"I think maliwanag na maliwanag na sa ating lahat na ‘yung pagtaas ng presyo by 87% noong nakaraang... Enero, Pebrero, walang dahilan ’yun. Kumpleto ang onion natin dito. Nagho-hoard lang talaga at iniipit ang presyo," Marcos said.

(I think it is quite clear to all of us that the increase by 87% in the price last January, February was due to no reason. We have sufficient onion supply. There's just hoarding and price manipulation.)

"Tapos ‘yung cold storage ay hindi pinapagamit sa iba para ‘yung kontrolado lang... ‘Yung mga sindikato, ‘yung kontrolado lang nila na onion, ‘yun lang ang puwedeng aabot sa palengke," he added.

(Then they do not allow their cold storage to be used by others. The syndicates make sure that only the onions they control would reach the markets.) 

The price of local red and white onions in Metro Manila markets early this year had ranged from P420 to P600 per kilo.

A Senate inquiry was even launched to investigate the high prices of onions in the country.

Marcos, who is also Agriculture secretary, said that his administration would continue to address the hoarding and smuggling of agricultural products in the country.

“Lahat pinapatibay din natin and we are making sure that first of all, simple lang, ‘yung mga simpleng problema na hinarap natin," Marcos said.

"‘Yung mga rice smuggling, sugar smuggling, onion smuggling, gagawin namin lahat para matigil ‘yan,” he added.

The Bureau of Plant Industry (BPI) in May expected onion prices to remain steady until November and said they do not see them reaching last year's steep prices, which ranged from P500 to P700 because of the scarcity of supply.

Assistant Director for Regulatory Services Ruel Gesmundo of the BPI on Wednesday, said this was because the country had enough supply of white and red onions from September to November.

Gesmundo made the statement during the House agriculture and food proprio inquiry into the possible hoarding and other acts of price manipulation by unscrupulous traders of agricultural commodities, particularly onions and garlic.

The price manipulation was blamed for prices climbing to as much as P700 per kilo during the last quarter of 2022.

“We have 10,843 metric tons of white onions and 98,393.86 metric tons of red onions as of April 20. We expect it to last until November,” Gesmundo said in May.

The bureau also vowed to implement reforms to prevent price manipulation of onions.

According to Speaker Martin Romualdez, the BPI made the commitment after its officials met with Romualdez, House appropriations panel senior vice chairperson Stella Quimbo, and House agriculture and food panel chairperson Mark Enverga.

This happened five days after Quimbo and Enverga said that an onion cartel existed and that it would not thrive without the help of some in the government.

“During the meeting, BPI Director [Glenn] Panganiban committed to submit in writing to Speaker Romualdez, within the week, the policy reforms the BPI will adopt to prevent price manipulation of agricultural products, specifically onions,” Romualdez's statement read.

“Among these reforms, which were discussed during the congressional probe on onion, include the following: opening up onion importation to prevent certain traders from cornering supply," he added.

"Frontloading aid to farmers to encourage production, the possibility of suspending importation during harvest season and review of existing tariff rates on imported onions to protect local farmers,” Romualdez said. —NB/KG, GMA Integrated News