Onions in Philippines ‘the most expensive in the world’; here’s why

Households in the Philippines have been feeling the pinch of skyrocketing prices of basic commodities — but the current cost of onions, they said, was unimaginable.

Retail prices of red onions has skyrocketed to as high as 700 pesos ($12.70) per kilogramme in recent days in Manila markets, possibly the most expensive in the world according to some economists.

That compares with 120 pesos to 170 pesos per kg about four months ago.

Though many other countries are reeling under an inflation crisis, the spike in Philippine onion prices was so sharp that authorities have now opened an investigation. Smuggling, price manipulation, and hoarding are being cited as possible reasons.

An official of the Department of Agriculture earlier said they have discovered a smuggling syndicate that has been hoarding the items, and then keeping them in cold-storage warehouses.

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The Bureau of Customs have also foiled huge smuggling attempts recently. Last week, it intercepted 17 million pesos (Dh1.14 million) worth of white onions, which were hidden in three cargo shipments declared as having clothing items and home products. Two other hauls worth 50 million pesos (Dh3.36 million) were also reported a few weeks ago.

There’s also the case of price manipulation at farm gates — which could be the reason why the imposition of a 250-peso suggested retail price failed to bring down rates, the authorities said in local media reports.

“There are two areas, one is agricultural smuggling and the other is price manipulation,” Department of Agriculture assistant secretary Kristine Evangelista said in an interview for a show on CNN Philippines. “We are looking at all angles in the same manner that we are also looking at all other options to be able to provide agricultural commodities at affordable prices.”

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