Onion argument
RADA rejects PNP rep’s claim St Elizabeth farmers getting low prices because of glut in market
BLACK RIVER, St Elizabeth — The Rural Agricultural Development Authority (RADA) says onion farmers in St Elizabeth have been getting support to market their produce against the backdrop of allegations of low prices because of a glut in the market from a political aspirant.
Mark Lee, RADA parish manager, said onions are being sold for $7,000 per 50-pound bag.
“We are giving them [farmers] distribution support, because we have trucks coming down from the ministry to take up the onion bringing it to the buyers. For about two weeks the price has been at $7,000 per bag. Before that, it was at $8,000 [for the 50-pound bag],” Lee said on Wednesday.
He was responding to queries by the Jamaica Observer, a day after People’s National Party (PNP) representative for St Elizabeth South Western Miranda Wellington, in a statement, raised alarm over what he said was a drastic drop in the price of locally grown onions.
Attributing the fall in price to an influx of imported onions, Wellington stated that, in recent weeks, the price of a 50-pound bag of onions sold by local small farmers has plummeted significantly, from $15,000 to $4,500.
“This dramatic decrease leaves the future of many farmers, some with over 30 years of experience, in a precarious situation,” Wellington claimed in the statement.
He added that: “The communities most affected include Flagaman, Beacon, Pedro Cross, Little Park, and Round Hill. Meanwhile, imported onions are being sold for $5,000 to $6,000 per 50-pound bag, further undercutting local farmers.”
A St Elizabeth farmer, who opted not to be named, said local onions usually range from $9,000 to $10,000 per 50-pound bag.
Efforts to get a comment from Agriculture Minister Floyd Green, Member of Parliament for St Elizabeth South Western, were unsuccessful as he declined to speak on the record and referred the Observer to RADA.
President of Jamaica Agricultural Society Lenworth Fulton said, while he has no evidence that onions are being imported, he is concerned that farmers are operating at a loss.
“I don’t have any data or any proof that onion was imported, but I do think so, because the amount on the market and the type of onion are definitely onions that have been imported into the country,” said Fulton.
“I don’t know if it comes in illegally or [if the] Government granted a licence to bring it in. The bottom line, however, there is like a glut situation now where the price is extremely low, and it is being sold below the production cost here, so our farmers are going out of business rapidly,” added Fulton.
He charged that Jamaican farmers are struggling to compete due to the importation of farm produce.
“You see everything started to subside when the Ministry of Finance removed that 15 per cent GCT [General Consumption Tax] on imported items it made it easier and cheaper to import and is putting the Jamaican farmers into extreme danger.
“The cheaper onion on the market is good for consumers, but it is bad for our farmers. The Jamaican farmers really can’t compete with farmers from California, Florida, and those out of Europe, because of many factors.
“Most of us here are working on lands that are not irrigated, and most of us here are working on small plots of land, which does not have the economy of scale to produce at the price as a place like the Dominican Republic and so on,” said Fulton.
“It is a matter of poor policy by the Government, and a lack of concern for our farmers… and if they want to do that they are [speaking] out of two sides of their mouth. One says., “Farmers, go and produce,’ the other one says ‘We are issuing import licences left, right and centre,’ after that farmer has invested their money then you import things, it is not good,” added Fulton.
But Lee dismissed the claim of a oversupply of onions on the market.
“There is no glut in terms of onions, but what happened is that the supply is diminishing presently,” said the RADA representative.
When asked if he was aware of onions being imported, Lee said RADA was focused on assisting local farmers.
“I couldn’t speak to that, because right now we are offering distribution support to get the onions to the buyers,” he said.