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Wednesday, May 28, 2008

 

Onion growers plead for moratorium
on import of commodity

 
AN association of 20 big onion growers based in Bongabong, Nueva Ecija, appealed to Agriculture Secretary Arthur Yap to allow importation of the commodity only from November to December this year when local supply is anticipated to run out.

“We are not against importation, but we hope DA will only release an import permit for the November to December period, not now when harvest is still ongoing, said Alfredo G. Lim Jr., spokesman of the Nueva Ecija onion growers.

Lim said the Department of Agriculture should restrict importation of onion to save the P4-billion onion industry and allow importation only when supply is in shortage.

“Once DA issues a permit, all types of [illegal] commodities will arrive. There will be flooding and dumping. Even now when there is no import permit yet, you already see imported [smuggled] onions all over the market. There is no winner in importation [not the farmers, not the Philippine economy],” Lim said.

The onion growers assured retailers that they can supply onion at P58 to P60 per kilo wholesale at Divisoria retail shops and will try to keep this price until the third quarter of the year so that there’s no present need for importation.

But the real casualty of more import permits are 35,000 onion growers throughout the country that also has negative impact on 500,000 others in the supply chain who are involved in service provision (seeds, fertilizers), cold storage, and transportation and distribution.

Although, Benito M. Domingo, owner of onion-growing BM Domingo Farms in Bongabong, admitted that onion farms were hit by heavy rains, he said DA’s allowing early importation while harvest is ongoing (six months in a year) from late December to May will kill the industry.

“This already happened to garlic. We lost it due to importation. We don’t want it to happen to onion. If we allow importation early now, we won’t be surprised if farmers will no longer plant onion next year,” he said.

Domingo also said that the country has lost its yellow (or white) onion to imports also because of too much importation.

From the two million bags production 20 years ago, the country just produces (from January to April) 200,000 to 250,000 bags of white onion, he added.

He also said that the country used to export onion to Japan 15 to 20 years ago.

The onion growers also ask government to curb the smuggling of onion which represents an estimated 10 percent of the four million bags (25 kilos per bag) yearly production (accounted from cold storage capacity). Smuggled onion are priced P10 per kilo lower than local onion, thus killing the local produce.

William Go, another onion grower, said consumers should understand that while farm-gate price of onion is only at P20 per kilo, numerous costs (mainly cold storage as onion is a highly perishable good), brings onion price up to P50 per kilo.

The country imports red onion from China and white onion from Holland and New Zealand.
-- Ira Karen Apanay

  
 

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