Department of Agriculture data showed only a modest supply shortfall of 7.56 percent in onions last year. Owners of cold storage facilities also said there was ample onion supply. Lawmakers who conducted an inquiry into the onion crisis have zeroed in on one other explanation for the 87 percent inflation rate for onions in December last year, when retail prices soared up to an eye-watering P750 a kilo: cartel activity.
President Marcos, who is concurrent agriculture secretary, has been informed by Congress members who conducted the inquiry that substantial evidence has been unearthed, showing that the cartel is engaged in the multiple aspects of onion trading, from farming to warehousing, logistics, local trading and importation.
Last May, the House of Representatives had identified the Philippine VIEVA or Vegetable Exporters and Vendors Association Philippines Inc. as the principal player in the alleged onion cartel. PhilVIEVA is a group of companies owned by Lilia or Leah Cruz, tagged as the “sibuyas queen” by lawmakers.
The President has ordered the National Bureau of Investigation and its mother agency the Department of Justice to study the findings of the House and pursue those engaged in the smuggling not only of onions but also other agricultural products – an offense that he said is tantamount to economic sabotage.
This probe could take some time, considering that agricultural products include commodities such as sugar, whose prices have stubbornly refused to soften despite the importation of 440,000 metric tons earlier this year and a regular harvest of sugarcane. The President said he is setting no deadline for the NBI probe.
The public is also waiting for action on the controversial process of importing the 440,000 MT of sugar, which was awarded to just three companies handpicked by the agriculture department. The sugar began arriving ahead of the release of an import order by the Sugar Regulatory Administration.
Expectations are also high about the government pushing through with the reported plan to overhaul agricultural supply and value chains to bring down food prices while at the same time raising the income of farmers.
Similar probes into various cartels have been ordered by previous administrations. Because the President is serving concurrently as agriculture secretary, however, there are higher expectations that his order will produce solid results.