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.

The cost of onions, widely used in many local dishes, more

than quadrupled in four months to hit as high as 700 pesos

($12.83) per kilogramme in Manila markets in December, among the

highest in the world and contributing to double-digit food

inflation.

Food prices helped push the consumer price index last month

up 8.1% 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% 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.

Source: ASEAN Exchanges