FROM THE MARGINS
Last month, President Ferdinand Marcos, Jr. signed into law Republic Act (RA) No. 12022, the Anti-Agricultural Economic Sabotage Act, one of the priority bills of his administration.
The passage of the law is a welcome development in the government’s fight against agricultural smuggling, profiteering, and hoarding — problems which have plagued farmers and fishers for decades. It is a major win not just of the agriculture sector, but every Filipino clamoring for price stability and food security.
RA 12022 classifies as economic sabotage the smuggling, hoarding, profiteering, and cartel operations involving agricultural and fisheries products worth more than ₱10 million. This crime is non-bailable, with stiff penalties for violators: life imprisonment and fines worth five times the value of smuggled or hoarded agricultural or fishery products. Even the transport and storage of smuggled goods is punishable with 20 to 30 years imprisonment and fines double the value of the involved commodity.
The agricultural products covered by the law include rice, corn, beef and other ruminants, pork, poultry, garlic, onions, carrots, other vegetables, fruit, fish, salt and other aquatic products in their raw state.
More teeth
RA 12022 repeals RA 10845, the Anti-Agricultural Smuggling Act of 2016 and addresses its limitations by expanding the definition of economic sabotage, providing stiffer penalties for violations, and setting up comprehensive mechanisms for enforcement and implementation.
Local food producers have long lamented large-scale cartel operations and smuggling due to law enforcement agencies’ failure to implement RA 10845. The agriculture sector loses billions to smuggling year after year, yet, data from the Department of Justice show that from 2016 until February 2023, only nine out of 159 large-scale anti-agricultural smuggling cases were filed in court. Almost half (48 percent) or 76 of these cases were dismissed and only nine cases reached the Supreme Court. Sadly, not one agricultural smuggler has ever been arrested or convicted.
To ensure effective enforcement, RA 12022 mandates the establishment of the Anti-Agricultural Economic Sabotage Council, which will be chaired by the President alongside the Secretaries of Agriculture, Finance, Transportation, Trade and Industry, Justice, Interior and Local Government, among others. There will also be an Anti-Agricultural Economic Sabotage Enforcement Group dedicated to apprehending violators and dismantling smuggling operations. The law also gives rewards and incentives of up to P20 million to informants, who can help ensure that cases will be successfully prosecuted.
Aside from requiring the registration of grains and cold storage facilities with the Department of Agriculture, RA 12022 also requires the establishment and maintenance of a Daily Price Index under the Bureau of Agricultural Research and Agribusiness Marketing Assistance Service.
Implementing rules
All in all, the intent of the new law is good. We hope that it will ease the plight of farmers, and lead to the prosecution of smugglers and profiteers who cause undue suffering to our food producers and the general public.
As the implementing agencies buckle down to work on the Implementing Rules and Regulations (IRR) of RA 12022, I hope they would open up avenues to consult with key stakeholders and affected sectors. This is to ensure that the protectionist stance of the law will not imperil ease of doing business, especially with regard to the required registration of cold storage and warehouses. The process must be efficient and not too lengthy, otherwise, we will be adding more barriers and complexity to trade. This will not redound to the benefit of farmers, agribusiness, or consumers.
I also hope that a continuing information and education program on the law will be conducted to increase the public’s awareness and understanding of this law.
Food security
The passage of RA 12022 is a step in the right direction to ensure our food security. We need to pursue other reforms, however, to strengthen agriculture; protecting agricultural lands; strengthening farmers’ cooperatives; investing in infrastructure, (especially farm-to-market roads, irrigation and post-harvest facilities); increasing access to financing, training, marketing and other support services for farmers and fishers.
The government should partner with the private sector to facilitate the distribution of agricultural produce and farm implements. I support Agriculture Secretary Francisco Tiu Laurel Jr.’s call for the construction of more ports and the establishment of storage and agri-processing facilities. These measures will lower the prices of agricultural inputs and reduce farmers’ cost in processing, transporting, and storing their produce. In turn, this will result in lower prices of commodities and more opportunities for farmers and fishers to invest in other income-generating activities.
Lastly, we need to help farming communities to deal with the challenges of climate change. Aside from involving them in disaster preparedness, there should also be affordable insurance to help people recover in case of disaster and other catastrophic events.
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“By eliminating smuggling, hoarding, profiteering and other cartel activities, we are not only shielding our local producers but also providing consumers with affordable agricultural and fishery products.” – Pres. Ferdinand Marcos, Jr.
(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)