Like I have been saying in the past months, those supposed supply shortages are artificial, man-made and are products of greedy people. If you go to the farms, you can see stocks that could feed an entire nation yet are not being brought directly to marketplaces but are hoarded to force prices up.
It is not enough for the Department of Agriculture to show its steadfastness and resoluteness in not being a tool of importers (who hoard to push up prices of food products) but the government itself must use its resources to bring the supplies directly to the market, not just through the Kadiwa stores but to the accredited network of dealers of the National Food Authority.
What I am saying is if NFA continues to hold on to its network of accredited rice/corn traders, it can use this same network to sell those onions (which government will buy directly at the farms from onion farmers) in these rice/corn stalls of its vendors.
This way, the government shows that it cares for both the farmers—by giving them the price due them for their products (unlike the almost giveaway price that traders want to impose on farmers)—and the consumers by giving the onions at a lower price (than the prevailing one of P350 or more per kilo). Is that so hard to think of?
We still have NFA, don’t we and we still have FTI so why not use the networks of these agencies in getting those supplies from farm to the intended markets? Why not tie up with the Department of Trade and Industry for a stronger regulatory function and even police power—to flush out those hoarded stocks.
Those hoarders must be arrested, their stocks confiscated and must be charged with economic sabotage.
In my story yesterday at opinyon.net I lauded the DA for being steadfast in not allowing onion importations. But then again, it segued by saying that if stocks will not be brought to the market, it might allow importation. What kind of decision is that? You are warning them but then again, giving them a ray of hope that you would allow them to import.
If you say one thing, the solution should be that DA would import directly, if the importers and hoarders would not release their stocks in the market, at a time they are needed most. (You see you can cook nothing without onions—stewed, boiled, sauteed, fried or even grilled, onions are needed.
The DA is standing firm in not importing onions if there is “available” local supply, and importation would be “last resort” to pull down the retail price of the commodity in the market. Actually, there is a lot of supplies being hoarded by those greedy traders.
This is the segue that I hate reading--- Agriculture Deputy spokesman Rex Estoperez said the department would only authorize the importation of the onion if existing local supplies will not be released to the market to help ease the price of the commodity. (But why accede to their manipulative practices. DA must force them to release these stocks, It must use its regulatory powers and join forces with the Department of Trade and Industry to force these stocks out).
Estoperez noted that the country has an inventory of around 15,000 metric tons at present.
“Importation is out of the question, we will not allow it. We do not have any plans,” he told reporters on Monday, Business Mirror reported.
“[But] if the [local] supply will not be released to pull down the prices, worse comes to worst, we will import,” he added. (If by we, the DA means it will do importation on its own and not through shrewd importers/traders, then so be it).
Estoperez explained that local producers should help bring down the price of onions, especially if there are available supplies in warehouses and cold storages.
“I was in Balintawak recently and there were sacks and sacks of red onions which came from Nueva Ecija. Again, worse comes to worst, we will allow importation if they will not release the supply. Huwag nila hintayin iyon [They shouldn’t wait for that to happen],” he said. (If I may say so, that is what they are forcing you to do—import).
Estoperez made the remarks on the heels of the national government’s seizure of at least 100,000 kilograms of smuggled yellow onions valued at P30 million.
The country is reeling from the prices of red onion, now fetching an average of P280 per kilogram—nowhere near the P180 per kilogram average price a year ago—due to supply problems.
In October, the Department of Agriculture (DA) was forced to issue a suggested retail price (SRP) on red onion at P170 per kilogram in its bid to address the rising prices of the commodity in the market.
In August, the DA revealed the country would suffer a shortage of key ingredients in making Filipino dishes, such as white onion and garlic, as total supplies, even with imports, are insufficient to meet overall demand for the commodities.
This year the DA decided not to issue import permits for another round of white onion importation to prevent farm-gate prices from being depressed.
Agriculture Assistant Secretary Kristine Y. Evangelista explained that they are persuading industrial users, such as restaurants, to use red onions instead of white onions as a solution to the current supply woes.
“We have to import white onions but our direction right now is to convince institutional buyers to buy red onions,” she said.
The country’s total onion imports from January to September declined by more than half year-on-year to 26,110.021 metric tons from 53,463.693 metric tons last year, based on Philippine Statistics Authority (PSA) data.
The Philippines self-sufficiency ratio (SSR) in onions last year fell to a three-year low at 68.2 percent, PSA data showed. This meant that nearly 7 out of 10 onions consumed in the country are locally produced.
The PSA defines SSR as the “magnitude of production in relation to domestic utilization.” It is the extent to which a country’s supply of commodities is derived from its domestic production or the extent to which a country relies on its own production resources.
The Philippines produced 218,047 metric tons of onion last year and imported 101,681 metric tons of the commodity, based on PSA data.