Govt includes red onions in price-monitoring setup

RED onions are now included in the basket of goods that the Department of Trade and Industry (DTI) would monitor to assist the Department of Agriculture (DA) in keeping the price of the commodity stable, the DTI announced over the weekend.

Trade Secretary Alfredo E. Pascual said two days before a new year they are calling on sellers “to keep prices within the suggested retail prices (SRP).”

“We are exerting every effort to ensure that prices of basic necessities and prime commodities are within reach of Filipino consumers,” Pascual said.

The DTI said its price monitoring for red onion is in response to Circular 12 issued by the DA and dated December 29, 2022. The circular places an SRP of P250 per kilogram of red onion in public markets.

Evangelista told reporters he met with stakeholders Wednesday last week.

“Based on our meeting with the stakeholders, our recommendation was to implement an SRP of P250 per kilo. This will be effective until the first week of January,” he said partly in Filipino. “After that, we will meet again since there will be an expected harvest so we will look into how to bring the cost even lower.”

The DA official said last Thursday that the farm-gate price contributed to the rise in prices of red onions in wet markets. Evangelista added that farm-gate price reached P460, resulting to prices of red onion in markets shooting up to around P600 per kilo to P720 per kilo.

Trade Undersecretary for Consumer Protection Group (CPG) Ruth B. Castelo said in a radio interview last Saturday that the memorandum circular issued by Padilla instructs DTI to only monitor prices. Castelo said enforcement would be under the purview of the DA.

“Through monitoring, we will assist in finding out the prices even in the smallest of stores,” she added. “We can help in that aspect but the enforcement will be conducted by the DA.”

Republic Act 7581 (Price Act) provides that the DA has jurisdiction over agricultural crops, fish and other marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other farm inputs.

Evangelista highlighted the role of the DTI in keeping the prices of goods stable. The DA official recalled a time wherein the Trade department assisted the DA when the latter had an issue with the price of pork.

Meanwhile, Castelo explained that the the word “suggested” in the “SRP” provision means that the price given by the manufacturer should also be the same price on the goods sold by the retailer.

“If the price varies—if the price is higher than what the manufacturer provided, the retailer shall not sell because they know that DTI will inquire. We will issue a letter of inquiry (LOI) to scrutinize why the price offered by the retailer is different from the SRP,” Castelo said.

The Trade undersecretary also noted that in these instances, the DTI looks into profiteering, wherein the price of a product has increased by 10 percent compared to the previous month.

Castelo said the same mechanic applies to the DA if the agency only decides to strictly enforce the P250 SRP.