President Ferdinand "Bongbong" Marcos Jr. has ordered an investigation on the smuggling of onion and other agricultural products, which he calls as "tantamount to economic sabotage."
President Ferdinand 'Bongbong' Marcos Jr. (Noel Pabalate)
Marcos directed the Department of Justice (DOJ) and National Bureau of Investigation (NBI) on Tuesday, July 4, to initiate the probe following findings that an onion cartel is indeed operating in the country amid the surge in onion prices in 2022.
“I have just given instructions to the DOJ and the NBI to initiate an investigation into the hoarding, smuggling (and) price fixing of agricultural commodities," Marcos said in a statement.
"And this is stemming from the hearing that we've conducted in the House, specifically by Congresswoman Stella Quimbo and the findings that they came up with," he added.
In a memorandum to the President by Marikina Rep. Stella Quimbo, who led the Committee on Agriculture and Food hearings at the House of Representatives, she stated that substantial evidence has been uncovered pointing to the existence of an onion cartel as she shed light on the causes behind the onion price surge last year.
Quimbo said the cartel has engaged in various activities including farming, importation, local trading, warehousing, and logistics.
The President emphasized the significance of these findings which are sufficient grounds to initiate an investigation, citing the need to address what amounts to economic sabotage.
"And that is why we are going to be very, very strict about finding these people and making sure that they are brought to justice," Marcos stated.
The hearings highlighted the sharp increase in onion prices starting in July 2022, attributed to a perceived shortage of supply. However, data from the Department of Agriculture Bureau of Plant Industry revealed only a modest shortage of approximately 7.56 percent in 2022, which could not justify the significant inflation rates reaching 87 percent in December of that year.
Quimbo reported that responses from cold storage facility owners during the hearings also indicated an ample supply of onions during the period of price surges.
This led to the examination of an alternative explanation: cartel activity. The cartel allegedly engaged in price-fixing through manipulation of stocks, leveraging control over cold storage facilities.