Gov’t ramps up onion buying to support farmers amid falling farmgate prices

AGRI-NEWS | Farming Posted on 2026-03-31 06:59:30

MANILA – The Department of Agriculture (DA) has intensified targeted procurement of onions to support farmers facing declining farmgate prices.

The move comes as Food Terminal Inc. (FTI) expands its market intervention efforts in coordination with private sector partners, particularly in Occidental Mindoro.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the initiative is aimed at stabilizing price fluctuations without disrupting market dynamics.

He emphasized the need to balance fair earnings for farmers with consumer protection, noting that strategic procurement and storage can help absorb excess supply while maintaining buffer stocks to prevent sudden retail price spikes.

Private investors have already purchased around 6,000 bags of onions in Occidental Mindoro at prices ranging from PHP32 to PHP35 per kilogram—well above the prevailing farmgate price of about PHP22 per kilo. These rates are considered sustainable given estimated production costs of PHP18 to PHP24 per kilo.

FTI Sales and Distribution Manager Edoard Medalla called on private sector players to further boost procurement of local onions to help stabilize prices.

While acknowledging that FTI’s intervention alone cannot absorb the entire harvest, Medalla said the effort is expected to support farmgate prices and reduce the risk of future supply disruptions.

He added that FTI aims to maintain buying prices at around PHP35 per kilo, depending on product quality and available storage capacity.

Onion production in Occidental Mindoro is estimated at around 3.2 million bags, prompting the agency to coordinate with storage experts outside the province to ensure quality preservation.

Medalla noted that since this is the first time FTI has entered the onion market in Mindoro, the agency is working with specialists from Nueva Ecija for proper storage and handling.

In Nueva Ecija, about 110,000 bags have already been procured at an average price of PHP40 per kilogram. FTI has also secured cold storage capacity for up to 190,000 bags in the province.

The DA said the initiative reflects a broader strategy to manage supply, support farmer incomes, and maintain price stability in the domestic onion market.

NPO News Team | Philippine News Agency - PR

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