EDITORIAL - Agricultural economic sabotage

For many years now, shortages and price spikes of rice, sugar and other agricultural commodities have been blamed on cartels, hoarders and smugglers. Certain persons such as the so-called Sibuyas or Onion Queen have been identified and grilled in congressional investigations. Yet how many people and their alleged coddlers in government have actually been prosecuted and penalized for agriculture-related offenses?

Perhaps the enactment of Republic Act 12022 would lead to this, and serve as a deterrent to supply and price manipulation in the agriculture sector. President Marcos signed yesterday RA 12022, the Anti-Agricultural Economic Sabotage Act, which seeks to protect not only consumers but also farmers and fisherfolk from unscrupulous practices in agriculture. The law repeals RA 10845 passed in 2016.

Under the new law, smuggling, hoarding, profiteering and cartel operations involving agriculture and fishery products would be classified as economic sabotage – a non-bailable offense that would warrant life in prison and fines of up to five times the value of the goods involved. Also accountable under the law are brokers, employees, financiers and transporters of the principal players.

The intent is noble and the stiffer penalties should serve as a deterrent – if the law can be properly enforced. The first year of the Marcos administration was marked by the onion crisis, sugar price surge, shortages of roaster chickens and potatoes for French fries, plus price spikes in rice that fueled inflation. Supply and price manipulators were blamed, along with collusion by crooks in government and certain well-connected traders.

Even when a high-profile crackdown featured raids on warehouses housing agricultural commodities, however, the owners maintained that they were simply pursuing sound business practices based on regular market forces and regulating the release of their products for sale. Consignees of smuggled items could not be traced. Officials suspected of collusion in unscrupulous practices were not indicted.

The President said that in 2023 alone, the country lost a “staggering” P3 billion to agricultural smuggling. Since the start of this year, authorities have seized over P230 million worth of smuggled agricultural products, he said. The cartels, he added, “are operating right under our noses.”

“Today marks a turning point,” the President said as he vowed that RA 12022 “will set in motion transformative outcomes.” He will be held to his word.