Philippines halts onion imports amid glut after 2023 dearth

The Philippines has temporarily suspended onion imports to prevent further depressing domestic prices amid a supply glut, in contrast to last year’s shortage that made the cooking staple costlier than meat.

Onion imports will be halted until May, but the suspension may be extended through July if domestic supply “remains sufficient to meet local demand,” Agriculture Secretary Francisco Tiu Laurel said in a statement on Friday.

“In principle, I agree with no onion importation until July. But that is on condition that if there is a sudden supply shortfall, we will have to import earlier,” he said. 

The Southeast Asian nation is not a huge onion importer, but a supply shortfall in January last year prompted it to buy overseas as prices of the commodity surged to about three times the price of chicken and around 25% costlier than beef at one point.

Laurel said, however, that the country’s onion output remains at risk from El Nino even as current supply is abundant. 

“Warmer temperatures and a prolonged dry spell caused by El Nino could spawn more pests that could undermine onion production,” the agriculture department said in Friday’s statement. The full impact of El Nino is expected to be felt around March and April, it added.

Laurel met with representatives of the Philippine Chamber of Agriculture and Food Inc. who said that they expect a surplus in onion supply with an additional 40% of land area planted with the crop.