MANILA — The Department of Agriculture (DA) will begin implementing a P120-per-kilo maximum suggested retail price for both red and white onions starting December 1, citing the need to rein in soaring market prices ahead of the Christmas season.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the price ceiling aims to restore order to a market where retail prices have climbed far beyond reasonable levels due to tight supply and alleged opportunistic markups. “There may be some tightness in supply, but that’s no excuse for runaway prices. At current market levels, it already smacks of profiteering,” he said.

Monitoring by the Agribusiness and Marketing Assistance Service (AMAS) showed retail prices reaching up to P300 per kilo — nearly triple what officials consider fair pricing. Tiu Laurel noted that imported onions land at around P60 per kilo, saying the P120 cap still allows “reasonable margins” across the supply chain.

“At P120, everyone—from importers to logistics providers to retailers—still earns a decent profit,” he said.

AMAS Director Junibert E. De Sagun said onion retailers expressed general support for the proposed cap during a recent consultation, provided that supply is delivered to them at about P90 per kilo. Retailers also requested that the cap take effect only once new shipments arrive, to prevent losses on existing stocks bought at higher prices.

Food Terminal Inc. has committed to supplying imported onions at P90 per kilo on a cash-on-delivery basis, with shipments expected within two weeks. This positions the DA to implement the cap in early December.

Stakeholders also underscored the need for strict monitoring of import volumes and arrival schedules to prevent market manipulation and avoid harming local farmers through sudden import surges.

Concerns were raised about possible farmgate price increases amid reduced planting and crop losses from recent typhoons. The DA assured growers and traders that any price ceiling on local onions will be subject to further consultation and potential adjustment should farmgate prices rise sharply.

The department said its goal is not only to temper prices during the holidays but to stabilize the onion supply chain, protecting consumers from sudden spikes while ensuring farmers and retailers are treated fairly.