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

ABC News (Australia)

15 Feb 202302:16

Summary

TLDRA 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.

Outlines

00:00

📈 Soaring Onion Prices Amid Shortages in Manila

A severe shortage of onions in Manila has caused prices to skyrocket by tenfold, reaching over $50 per kilogram. This shortage, combined with supply chain issues and rising fuel costs, has driven the Philippines' food inflation to its highest level since 2009, with a rate of 10.7% in January. For local vendors, the high prices are cutting into profits, leaving them with barely enough income to cover their needs.

👨‍🌾 Government Response to Onion Crisis: Importation Measures

In response to the onion crisis, President Ferdinand Marcos Jr., who also serves as the country's agriculture secretary, authorized the emergency importation of over 21,000 tons of onions. The move was aimed at reducing prices, but local farmers were displeased with the timing, as it came just two weeks before their peak harvest. This forced many farmers to sell early at lower prices to avoid significant losses.

😟 Farmers' Concerns Over Imports and Low Prices

Local onion farmers expressed concern that the government's untimely importation has negatively impacted them. Despite having a good harvest, they fear losses due to the suppressed prices. Farmers are not entirely against importation but believe it should be done strategically to avoid undermining local crops and prices.

🌍 The Role of Imports in Food Security

Imports are recognized as a crucial element in the Philippines' food security. They serve as a 'safety valve' to address local supply disruptions caused by events like Avian Influenza and typhoons. However, the government must balance imports with local production to ensure stability in the agricultural sector.

⚖️ Unethical Traders and Artificial Shortages

Another issue troubling local farmers is the presence of dishonest traders who buy onions at low prices, hoard them, and create artificial shortages. By manipulating supply, these traders can later sell onions at higher prices, further distorting the market.

🛑 Marcos Administration's Response and Need for Reform

The Marcos Administration has acknowledged the shortcomings in its approach to food security and importation planning. While it is investigating these issues, local farmers and consumers are still feeling the impact of high prices and insufficient reforms. Both groups are eager for changes that will stabilize the market and make basic produce like onions more affordable and accessible.

Mindmap

Keywords

💡Onion Shortage

The shortage of onions in Manila markets has led to a significant price increase, with onions costing more than fifty dollars per kilo. This shortage is central to the video's message as it highlights a critical food supply issue in the Philippines, affecting both consumers and farmers.

💡Tenfold Hike

The term refers to the sharp increase in onion prices by ten times the usual amount. This dramatic rise in prices is a result of the shortage and is a key point in the video, underscoring the severity of the inflation crisis in Manila.

💡Food Inflation

Food inflation refers to the increasing prices of food items, which in this case, hit a high of 10.7% in January, the worst since 2009. The video discusses how the inflation is exacerbated by supply issues and rising fuel costs, directly impacting everyday people and the economy.

💡Emergency Importation

Emergency importation refers to President Ferdinand Marcos Jr.'s decision to import over 21,000 tons of onions in an attempt to stabilize prices. This is highlighted in the video as a controversial move because it occurred just before the local harvest, affecting local farmers negatively.

💡Local Onion Farmers

Local onion farmers are central figures in the video, expressing their frustration over the emergency importation. The farmers had to harvest early and sell their crops at lower prices, causing financial losses. Their struggles symbolize the broader impact of the government's agricultural policies.

💡Supply Issues

Supply issues refer to the challenges in maintaining a stable supply of onions in the Philippines due to various factors like poor planning, avian influenza, and typhoons. These issues are crucial to understanding the reasons behind the food shortage and the subsequent inflation.

💡Hoarding

Hoarding is described as an unethical practice by traders who buy onions at low prices from farmers and store them to create an artificial shortage, inflating prices later on. This manipulation of the market contributes to the severe price hikes that consumers face.

💡Agricultural Policy

The video touches on agricultural policy, specifically criticizing the timing of imports and the Marcos Administration's planning in relation to food security. The policy failures have led to local farmers losing money and consumers paying extremely high prices for basic goods like onions.

💡Food Security

Food security is the availability of sufficient, safe, and nutritious food to meet the needs of a population. In the video, the Philippines’ food security is under strain due to shortages and inflation, pushing the government to resort to emergency measures like importation.

💡Price Manipulation

Price manipulation refers to traders exploiting the onion shortage by hoarding and then selling onions at inflated prices. This practice aggravates the supply crisis and is a critical issue discussed in the video, as it harms both farmers and consumers.

Highlights

A shortage in onions has caused a tenfold price hike in Manila markets, reaching more than $50 per kilo.

Supply issues and high fuel costs have driven the Philippines' highest food inflation rate since March 2009, reaching 10.7% year-on-year in January.

Consumers are struggling with high prices, barely making enough money to survive, with no savings left.

President Ferdinand Marcos Jr, who appointed himself as Agriculture Secretary, approved an emergency importation of more than 21,000 tons of onions.

Local farmers argue that the emergency importation was mistimed, occurring just two weeks before the peak harvest season.

Farmers were forced to pick their crops early and sell at low prices to avoid further losses.

Farmers express concern that even with good harvests, low prices due to importation make it impossible to earn a profit.

The local farming community is not against importation but believes it should be timed better to avoid hurting local growers.

Imports are considered a key part of food security in the Philippines, helping to mitigate supply shocks caused by factors such as Avian Influenza and typhoons.

Unscrupulous traders are manipulating onion prices by buying at low prices from farmers, hoarding the produce, and then selling at inflated rates.

The Marcos administration is aware of the shortcomings in addressing food security and planning but is still investigating these issues.

Local farmers are eagerly awaiting reform and changes to prevent future crises and financial hardships.

Consumers are feeling the burden of soaring prices for products that are typically affordable and abundant.

Onions, a staple vegetable in the Philippines, have become scarce and expensive, a situation impacting both farmers and consumers.

The onion shortage highlights broader challenges in the agricultural sector, including poor timing of imports, price manipulation, and inadequate government response.