Local Red Onion Prices Surge Amid Supply Shortages, Storage Concerns, and Imports

The increasing trend in the retail prices of local red onions was also observed in the public market of Batong Malake in Los Baños, Laguna, with the estimated average retail price increasing from Php140 per kg in January to Php180 per kg in February, peaking at Php190 per kg. The onion harvest season was set to begin in February, raising expectations that the increased supply would help stabilize prices. However, DA Secretary Francisco Tiu Laurel Jr. expressed concerns that the newly harvested onions were not reaching the market, as prices remained unusually high. He stressed that onions should not be stored at this stage, as storage typically occurs later in the harvest season. The agriculture secretary warned that if onions are being withheld from the market and kept in storage now, it could indicate price manipulation and hoarding.  

To address these concerns, the DA Secretary ordered the Bureau of Plant Industry (BPI) to conduct nationwide inspections of onion cold storage facilities to prevent potential hoarding and price manipulation. Under Republic Act (RA) No. 12022, or the Anti-Agricultural Economic Sabotage Act, practices such as hoarding, profiteering, smuggling, and cartel operations involving agricultural and fishery products are classified as economic sabotage. Offenders face severe penalties, including a fine of up to five times the value of the products involved and life imprisonment.

Importation Amidst Harvest Season

On February 11, 2025, DA defended its decision to import 3,000 metric tons (MT) of red onions as a necessary measure to prevent price surges. Agriculture Secretary Francisco Tiu Laurel Jr. explained that data from the BPI indicated a deficit of 7,000 MT of onion stocks by February, prompting the government to authorize imports. Despite criticisms from farmers’ groups, the DA Secretary emphasized that the importation was a strategic and limited intervention to stabilize prices and avoid repeating the 2022 crisis when onion prices soared to Php700 per kg due to supply shortages. 

The DA maintains that the imported volume remains minimal compared to the expected local production, which is projected to peak between March and April at 145,000 MT for red onions. DA also cited reports from large-scale onion producers in Nueva Ecija that full harvests are expected between late March and early April, making timely intervention crucial to prevent excessive price increases. The DA insists that the measure balances farmers’ interests and consumer affordability, ensuring price stability in the market.

Government Initiatives

To address onion supply challenges and market stability, the DA has intensified efforts to ensure fair trade practices and transparency in the supply chain, preventing artificial shortages and price manipulation. Meanwhile, the Department of Science and Technology – Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (DOST-PCAARRD) is strengthening research initiatives to combat key agricultural threats affecting onion yields. These combined efforts aim to stabilize supply, support farmers’ productivity, and promote sustainable agricultural practices for long-term market resilience.

• Inspection of Cold Storage Facilities

On February 27, 2025, DA found no evidence of onion hoarding following a nationwide inspection of cold storage facilities conducted by the BPI in response to the rising retail prices of onions due to suspected manipulation and hoarding. The inspection revealed that only 500 MT of red onions were stored in warehouses in Southern Tagalog and Central Luzon. According to DA spokesman Arnel de Mesa, the local red onion harvest is expected to peak between March and April, reaching 145,000 MT. According to BPI, the monthly consumption of red onions is estimated at 17,000 MT. However, the current harvest is 30MT only.

• Onion Anthracnose Solutions

The DOST-PCAARRD is funding a research project led by the University of the Philippines Los Baños – College of Agriculture and Food Science – National Crop Protection Center (UPLB-CAFS-NCPC) to develop sustainable chemical and biological management strategies for onion anthracnose. This major fungal disease has caused significant yield losses, particularly in Nueva Ecija. The project aims to assess current disease management practices, evaluate fungicides with different modes of action, identify biological control agents, and determine alternative hosts of anthracnose pathogens. The project will produce two effective fungicides and one biological control agent. Set for completion in June 2026, the initiative seeks to reduce disease occurrence, minimize chemical inputs, and promote sustainable onion production.

• Fall Armyworm Awareness and Management

DOST-PCAARRD is funding another research project under the Harnessing Adaptive Responses and Best Practices against Fall Armyworm using Science and Technology (HARABUST) program to enhance awareness and management of the fall armyworm in corn, onion, and sugarcane. Led by the UPLB-CAFS-NCPC, the project aims to educate farmers in Nueva Ecija, Laguna, Batangas, and Negros Occidental through awareness seminars and multilingual information, education, and communication (IEC) materials. FAW has caused significant damage to sugarcane fields, particularly in Negros Occidental, and continues to threaten corn and onion crops. By providing accessible and practical knowledge on FAW behavior and control strategies, the project seeks to equip growers with science-based management approaches. This initiative aligns with national development goals, including food security and sustainable agricultural productivity, and is set for completion in October 2025. Prior to this, DOST-PCAARRD also funded a project implemented by the Central Luzon State University (CLSU) wherein they developed a nanobiopesticide against armyworm larvae that demonstrated a 100% mortality rate within 48 hours (see article by clicking this link: https://tinyurl.com/AABHMarketAdvisory012). 

Market Outlook

The recent surge in local red onion prices, which peaked at Php250 per kg in February, has placed a financial strain on consumers despite the ongoing harvest season. Delays in bringing newly harvested onions to market and concerns over storage practices have contributed to price fluctuations. In response, the government has implemented importation and cold storage inspections to address potential hoarding and help stabilize prices. With peak harvests anticipated between March and April, prices may gradually ease if the supply chain remains efficient and transparent. The imported onions should help moderate market volatility in the short term, depending on proper distribution and timing of release.  

The high cost of local red onions continues to impact household expenses for consumers, though upcoming harvests and imports could offer some relief. At current prices of Php 250/kg, a typical family’s weekly onion purchase of approximately half a kilogram now costs PhP125, representing about 4% of the weekly minimum wage in Metro Manila. Meanwhile, farmers may benefit from the price increase, but they also face challenges such as disease outbreaks and tightened competition due to imports. Research on managing anthracnose and fall armyworm remains crucial to improving farm productivity and minimizing post-harvest losses. Striking a balance between farmer profitability and consumer affordability is key to ensuring a stable and sustainable onion market in the long run.