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DA intends to “take out the middleman” in order to lower onion prices.

The Department of Agriculture stated on Saturday that it is concentrating on getting rid of all the layers of dealers that contribute to the high cost of commodities in order to lower onion retail prices.

The removal of specific layers of traders is what we are currently doing in order to lower the price. During a news forum at Dapo Restobar in Quezon City, Agriculture Assistant Secretary and spokesperson Kristine Evangelista said, “As we all know, retail price comprises the cost of biyahero (trader) and the cost of the retailer.

“At the same time, we’re working to connect our farmers with marketplaces and retailers directly. If shops can purchase products at a lower cost, this will result in lower market prices, she said.

According to the DA official, onion retail prices in wet marketplaces are still rather high at PHP400–PHP550 per kilo.

In addition to improving the market connection between producers and customers, Evangelista said the DA is also examining potential supply-chain bottlenecks and preparing farmers’ cooperatives to act as middlemen.

“There is no doubt that we will keep moving in this way. To be fair to our main stakeholders, the producers, and to safeguard the consumers as well, we will reduce the number of middlemen in the transactions, Evangelista said.

She stated that the DA is making sure that the introduction of onions won’t harm local farmers.

“As you may have seen, unlike before, there is a cutoff period for the importation. Therefore, there are some restrictions in place to protect local onion farmers’ harvests as well, she said.

The DA authorized the importation of 21,060 metric tons of onions this week and gave all qualified importers until January 27 to deliver their goods.

The importation of onions is intended to halt the increases in the price of the product in the local markets before the height of the harvest season, which is anticipated around mid-February.

Local onion farmers expect to start harvesting in February and continue through April.

Evangelista stated that the DA would be putting interventions in place over the long term to lower production costs while also raising yield.

She said that they are also considering potential locations for the cold-storage facilities that the DA would set up to house extra produce.

“We need to build more facilities. The Bureau of Plant Industry publishes a list of authorized cold-storage facilities. The DA budget for this year includes that. These facilities should be placed in areas of productivity, according to Evangelista.

“As far as the Department of Agriculture is concerned, our strategy is clear: we want to boost output while lowering costs. Making agricultural products accessible and reasonable for customers is the other side of it, she said.

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