Costlier than meat: Why are onions so expensive in Philippines?

Inflation in the Philippines hit a 14-year high in December 2022.

A severe shortage of onions has hit the Philippines, causing protests and forcing people in the island nation to change their food habits. Onion is a staple in Filipino cuisine and the shortage has caused widespread agitation in the country.

According to daily price monitoring data released by the Philippines’ Department of Agriculture, the retail price of a kilogram of local red onion was in the range of 240-350 pesos on January 27 in NCR markets, while that of imported red onion was 200-250 pesos. Local red onion was reportedly the most expensive in the Marikina Public Market of metropolitan Manila, retailing between 300-350 pesos for a kg.

This is more expensive than a whole chicken, which was available for 170-210 pesos per kg, and a kilogram of milkfish — the national fish of the Philippines — which was available in the range of 150-220 pesos. On ordinary days, meat is considerably more expensive than fruits and vegetables.

The government allowed the import of 3,960 metric tonnes (MT) of fresh yellow onion and 17,100 MT of fresh red onion into the country on January 10, setting January 27 as the last day of import.

Experts, however, noted that the government intervention was too little and too late, since the harvest season is right around the corner. According to the Philippines’s Department of Labour and Employment, the minimum non-agriculture wage in the NCR region of the country is 500 pesos – the mark that was breached by the cost of a kilogram of onions.

Food prices across the world have soared on the back of Russia’s invasion of Ukraine, which began in February 2022 and disrupted supply chains. Global warming and a worsening climate crisis that has disrupted crop harvest seasons have compounded the issue.

Lawmakers have also alleged potential overpricing and price manipulation of onions in the Philippines. On January 4, Arlene D. Brosas of Gabriela Women’s Party, France L. Castro of ACT Teachers Partylist, and Raoul Danniel A. Manuel of Kabataan Partylist filed a resolution in the House of Representatives, urging an immediate investigation into the charges. The resolution also observed that local red onion was trading between 500 and 720 pesos for a kilogram on December 28, 2022, whereas a kilogram of local white onion was priced around 600 pesos.