Onions put Philippines in a stew over food price inflation | The World

Summary

A severe onion shortage in Manila has led to a dramatic price hike, with prices soaring to over $50 per kilo. The Philippines is experiencing its highest food inflation since 2009, with fuel costs and supply issues worsening the situation. President Ferdinand Marcos Jr., acting as agriculture secretary, authorized the emergency import of onions, but local farmers say this move came too close to their harvest season, leading to losses. Traders are accused of hoarding to inflate prices. The Marcos administration is under pressure to address food security challenges as both farmers and consumers suffer.

Takeaways

• 🧅 A severe onion shortage in Manila has caused a tenfold increase in prices, exceeding fifty dollars per kilo.
• 📈 The Philippines is experiencing its highest food inflation since 2009, with inflation hitting 10.7% year-on-year in January.
• 💸 Rising prices have left people barely able to cover their expenses, with no room for savings.
• 👨‍🌾 President Ferdinand Marcos Jr., who appointed himself Agriculture Secretary, authorized the emergency importation of 21,000 tons of onions to lower prices.
• 🚜 Local farmers criticized the importation timing, as it occurred just before their peak harvest season, forcing them to sell early at lower prices.
• 😟 Farmers are concerned that despite having good crops, low prices will prevent them from making profits.
• ⏳ Farmers are not against importation but argue it should be done at the right time to avoid damaging local markets.
• 🔄 Imports are seen as a necessary part of food security due to unpredictable local supply shocks like typhoons and diseases.
• 💰 Traders are accused of manipulating the market by hoarding onions bought at low prices to create artificial shortages and drive up prices.
• ⚖️ The Marcos administration acknowledges issues with food security planning and is working to address them, though farmers and consumers continue to feel the impact.

Q & A

What is the main cause of the tenfold hike in onion prices in Manila markets?

The main causes are a shortage in onion supply and high fuel costs.

How high have onion prices risen in Manila due to the shortage?

Onion prices have risen to more than fifty dollars per kilo.

What was the food inflation rate in the Philippines in January, and how does it compare historically?

The food inflation rate in January was 10.7%, the highest since March 2009.

How has the surge in prices affected consumers and small businesses?

Consumers and small businesses are struggling, with just enough income to get by and no savings left.

What action did President Ferdinand Marcos Jr. take to address the onion price surge?

President Ferdinand Marcos Jr. approved an emergency importation of more than 21,000 tons of onions to reduce prices.

Why were local onion farmers unhappy with the timing of the importation?

The importation occurred just two weeks before the peak harvest season, forcing farmers to pick their crops early and sell at lower prices to avoid losses.

What risks do local onion farmers face if prices are depressed?

Local farmers risk not making money from their crops if prices remain low, even if the harvest is good.

How do local farmers view importation as part of food security?

Farmers acknowledge that imports are necessary for food security but emphasize that they should be done in a timely manner to avoid harming local producers.

What unethical practices are affecting the local onion market?

Unscrupulous traders buy onions at low prices from farmers, hoard them for several months, and create artificial shortages to sell them at higher prices.

What is the Marcos Administration's response to the ongoing food security issues?

The Marcos Administration is aware of the shortcomings in addressing food security and planning, and it is looking into these issues.