The Onion Fiasco in Cebu: Why you should care?

In the early days of 2023, whether you were craving for ginabot, or pungko-pungko after a long study session, or just wanted to enjoy a sizzling platter of sisig, you would notice that the food you once enjoyed in the past felt different. It all boils down to one common feature: the lack of onions. From December 2022 until late January 2023, the prices of onions in the Philippines skyrocketed to almost 600 pesos per kilo. (Guiterrez, 2023). 

As of the evening of March 17, 2023, prices of red onions in Cebu City’s Carbon wet markets have returned to 70-90 pesos per kilo, which was in contrast to the 200-350 peso price during the price hike. Although the crisis seemed unnoticeable as you are reading this, this event had severe socio-economic implications. But before explaining its socio-economic impact, let’s get to know more about how it happened and why.

One of the impactful causes of why this existed was the shortage in onion supply. Basic economics will tell you that when the supply of a certain good in the economy is depleting, the price of the good increases to compensate for the loss in supply. The Department of Agriculture has announced during mid-2022 that the local supply of onion, garlic, and salt was insufficient (Calderon, 2022). Usually, when projections such as these have been released for agricultural products, the government through the Department of Agriculture plans out how to ensure the stability of prices of locally-sold crops. 

There is a two-fold economic approach to this. To ensure the stable supply of agricultural goods, production from local farms is augmented by imports of the crop. The augmentation of this supply by importation is also made in a way such that local producers are still equitably compensated. The Philippines imported almost 21,000 metric tons of onions, which will coincide with the harvest season of onions in the country to augment local supply of onions produced by our local farmers (Ragasa, 2023).

The socioeconomic impact on this crisis affected producers, sellers, and consumers of onions in Cebu. An onion seller in the Carbon wet market who requested anonymity willingly shared her experiences during the onion crisis. She explained that when prices rose, she noticed the price increase as she purchased her supply from trucks that arrive from Mantalongon, Dalaguete, the “Vegetable Basket of Cebu”. 

Although prices did not increase as much by the proportions reported by mainstream media, the price increase resulted in the need to continue investing significantly larger capital to purchase the same quantity of onions as they used to before. She also mentioned that during the time prices of onions were high, people purchased lesser quantities of onions, as she is forced to adjust the prices higher to compensate for the increase of capital she invested in. 

When it was announced later within January that prices of onions were to drop because of the importation, she recalled feeling disappointed because of how she has to readjust the prices of onions to a lower more consumer-friendly price, just so she can still sell the onions before the supply becomes unsellable. In the end, she sustained economic losses. It can be said that this situation is also shared by other onion sellers in Cebu and around the country. 

The onion fiasco was a sheer reflection of how economic crises can affect the general public. In an interconnected economy, where different industries rely on each other for sustenance and growth, a crisis such as this can lead to a chain reaction in these industries. What makes these concerns more pressing is that in the end, it is the everyday Filipino consumer that suffers. However, as we can learn from this fiasco, it is how we view the greater scheme of things that allow us to take the proper course of action in averting economic crises. Early detection of supply and demand trends and resolving this in a timely manner may mean the difference for every Filipino. 

Because of its wide scale impact, it is fitting that not only we also act as vanguards to our local and national economy, but also promote the well-being of our own local producers. The onion fiasco has revealed a glimpse of the imagery of our Philippine economy. It revealed how our economy is like the bayanihan, the image of the nipa hut being carried by many people. We have to do our part as citizens to help carry the Philippine economy to greater prosperity. 

Sources:

Calderon, L. (2022, August 30). Onions, garlic, salt production insufficient, Da warns. cnn. Retrieved March 20, 2023, from https://www.cnnphilippines.com/news/2022/8/30/Onions-garlic-salt-production-insufficient-DA-warns.html

Gutierrez, D. (2023, February 7). Da sets SRP of imported Red Onion at P125 per kilo in Metro Manila. INQUIRER.net. Retrieved March 20, 2023, from https://business.inquirer.net/385402/red-onion-srp-in-ncr-now-at-p125-per-kilo-da

Ragasa, F. Y. W. (2023, January 11). Explainer: Why onions in ph are now more expensive than meat. cnn. Retrieved March 20, 2023, from https://www.cnnphilippines.com/news/2023/1/11/High-prices-of-onions-in-PH-explainer.html 

ABOUT THE AUTHOR:

Ken Boltiador is the National Director of LIGTAS Philippines. To learn more about the author, check out his profile at The Director's Corner.