Soaring prices and smuggling: The Philippines are in an ‘onion crisis’

Issued on: 26/01/2023 – 18:47

The humble onion is being sold for as much as 600 Philippine pesos (10 euros) per kilogram, even higher than the daily minimum wage in the country, and far beyond the average global price of 1.50 euros per kilogram.

An onion is now nearly three times as expensive as chicken at Filippino markets, and is 25% more expensive than beef. 

Onions are now considered so luxurious that Filipinos have begun likening them to gold. One bride clutched a bouquet of onions at her wedding. Another couple gave out onions as wedding gifts. Jokes featuring onions as a rare and expensive status symbol abound online.

The shortage and consequent price surges come after billions of pesos worth of crops were destroyed by a series of typhoons in 2022. This, alongside global food, fuel and fertiliser crises pushed the country’s inflation rate to 8.1% in December 2022 – a 14-year high. The Philippines is also one of the most food-insecure countries in Asia, depending on imports to feed its population.

The onion has become the symbol of this food crisis, more than quadrupling in price over four months. Some pointed the finger at the department of agriculture for failing to import onions when shortages were on the horizon. 

Others suspected price manipulation, calling President Ferdinand Marcos Jr., who also appointed himself agriculture secretary, “directly accountable” for the spike.

The shortages and inflation have prompted many to start bringing onions in from abroad. Posts online say that onions are the best new souvenir, in place of chocolates or keepsakes. Several members of a flight crew were investigated after bringing 15 kilograms of onions into the country from Saudi Arabia. 

But officials have warned travellers not to import or smuggle onions into the country. They seized and impounded 500 million to 600 million pesos (8.4 million to 10 million euros) worth of onions last year. While some individuals have brought in sacks of onions for their families, others are smuggling mass quantities in with other goods. In December 2022, authorities found 50,000 kilograms hidden among imported pastries and bread products.

On January 22 and 23, customs officers intercepted nearly 9.5 million pesos (160,000 euros) worth of red onions at the Port of Zamboanga.

President Marcos said the government wants to find a way to sell these smuggled goods legally.

The government announced in early January that it would import 22,000 tonnes of onions as a “temporary solution” to help meet demand and bring down prices.