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MANILA, Philippines — The Department of Agriculture (DA) plans to implement a maximum suggested retail price (MSRP) on onions and garlic to stabilize the prices of two of the most consumed vegetables in the country, amid global market volatilities caused by geopolitical conflicts in the Middle East.
According to Agriculture Secretary Francisco Tiu Laurel Jr., the implementation of the MSRP will help curb domestic price spikes that may be triggered by the ongoing conflict between Israel and Iran, which is affecting the global oil market.
He explained that rising oil prices impact the entire agriculture sector, as they lead to higher freight charges, more expensive fertilizers and costlier feed products – causing a domino effect across food value and supply chains.
“There should not be a huge spike. An increase of five to 10 percent is normal,” Tiu Laurel said.
Despite this, the agriculture chief assured the public that there is no reason to panic, noting that prices remain stable and the country’s food supply is sufficient.
“We just have to be ready. And we are now preparing other alternatives, like for fertilizer we are planning to shift to organic liquid fertilizers. That is one of the solutions in mind,” he added.
For imported garlic, the DA is proposing an MSRP of around P100 per kilo, while onions are expected to be priced between P100 and P120 per kilo.
A price cap on commodities, Tiu Laurel added, remains a possible next step should industry players, including retailers, disregard the MSRP.
“We are not removing it from the menu of things that we will do. But for now, strictly MSRP will be implemented,” he said.
The department is also preparing to roll out its P150-million fuel subsidy for farmers and fisherfolk in the event that global crude prices hit $80 per barrel – the threshold indicated in the General Appropriations Act.
In a separate development, the DA has decided to postpone its planned P2-per-kilo reduction in the MSRP of imported premium rice next month due to uncertainties in the global market caused by the escalating conflict in the Middle East.
“We’ll likely delay the rollout by a month or two to gain a clearer picture of where global prices are heading,” Tiu Laurel said.
Earlier, the DA announced a cut in the MSRP on imported rice (five percent broken) to P43 per kilo from the current P45 per kilo beginning July 1.
Contaminated onions
Amid price stabilization efforts, the DA is now also dealing with a separate issue involving food safety after red onion samples taken from the Paco Public Market in Manila tested positive for Escherichia coli (E. coli), prompting a crackdown on the sale and consumption of smuggled onions.
Tiu Laurel said the onions, which appeared significantly larger than locally grown varieties, were likely imported illegally without inspection or permits.
“This is a food safety issue and a clear threat to public health,” said Tiu Laurel.
In response, the department will order the confiscation of the tainted produce under the provisions of the Food Safety Act of 2013.
The Bureau of Plant Industry (BPI), along with other DA monitoring units, has been directed to remain vigilant in public markets and submit suspected samples for testing.
The department also sought the help of the Philippine National Police in identifying and going after those behind the illegal onion trade.
According to the DA, no new import permits have been granted, following President Marcos’ directive to protect local farmers who have just completed their harvest season.
BPI director Gerald Glenn Panganiban formally informed the Manila local government of the test results, which indicated the presence of E. coli and pointed to possible fecal contamination and improper sanitation in the handling of the onions. He also recommended the confiscation of the affected products to prevent potential foodborne illnesses.
Meanwhile, a separate shipment of 25 metric tons of red onions seized by the BPI and the Bureau of Customs at the Mindanao International Container Terminal in Misamis Oriental is undergoing testing for contaminants, including heavy metals, pesticide residues and harmful bacteria.
Should the results show that the onions are safe for consumption, Tiu Laurel said the DA would request that the shipment be turned over for government distribution instead of being discarded.– Christine Boton
