Retailers who don’t follow onion SRP will face raps
Credit to Author: Bella Cariaso| Date: Mon, 22 May 2023 00:00:00 +0800
MANILA, Philippines — A ranking official of the Department of Agriculture (DA) yesterday vowed that cases of profiteering and price manipulation await traders and retailers who fail to comply with the P150 per kilo suggested retail price for red onions and P140 per kilo SRP for white onions.
Agriculture Assistant Secretary Kristine Evangelista said that while the DA and the stakeholders agreed to start the SRP today, the agency will give leeway to the vendors to sell their old stocks in order to stop giving them an alibi that they bought the bulbs at a higher price.
“We are supposed to start the implementation tomorrow (Monday) after the stakeholders (meeting) on Friday. Hopefully, we are looking at Tuesday for the implementation (of SRP) together with enforcement. At least, they have enough time to sell their old stocks as this was the issue raised during the stakeholders meeting, but definitely within the week is our target,” Evangelista said.
She added that the DA wants to prevent the previous experience where there was zero compliance in the imposition of SRP for onions.
“That was our experience in the past,” Evangelista added, referring to the P250 per kilo SRP imposed in December 2022 and P125 SRP on imported onions in February 2023, both failed to get compliance from traders and retailers.
She explained that during the stakeholders meeting last Friday, cold storage owners vowed to set the wholesale price for red onions at P115 per kilo and P100 per kilo for white onions.
“All the stocks of the farmers were already sold to the traders. The traders placed their supply to the cold storage facilities, and operators of these facilities will put a sign on the wholesale price, P115 (per kilo) for red onions and P100 (per kilo) for white onions,” Evangelista said.
According to her, the Bureau of Plant Industry and the DA enforcement group led by Assistant Secretary for inspectorate and enforcement James Layug will monitor the inflow and outflow of onions in cold storage facilities to prevent the hoarding of bulbs.
“We all know that if the onions will not be released from the cold storage, there will be a shortage in supply. Even if our farmers harvested many onions, if these will not reach retail, we will have problems with regard to the prices in the market,” she said.
Evangelista said that under Republic Act 7581 or The Price Act, vendors and traders may face charges for profiteering and price manipulation.
“It is important when we have SRP, vendors should tell us the source of the onions if they fail to comply with the SRP. We will go to the source of the onions so that we can determine if there is profiteering in the wholesaler, and at the same time profiteering in the retailers, everybody in the value chain for that matter,” she said.
Based on monitoring of the DA on Friday, onions are sold as high as P200 at Guadalupe Market in Makati City; Marikina Public Market, and Mega Q-Mart in Quezon City.
The retail prices of onions ranged between P160 to P190 per kilo at New Las Piñas Market; San Andres Market, Quinta Market, Pritil Market, all in Manila; Pamilihang Lungsod ng Muntinlupa; Pasay City Market; and Commonwealth Market and Muñoz Market, both in Quezon City.
Meanwhile, Speaker Martin Romualdez called on the National Bureau of Investigation, Philippine National Police, Philippine Competition Commission and DA “to pursue the leads uncovered by the House probe into alleged onion cartel and file appropriate charges.”
“Let’s put an end to their illegal scheme that has brought suffering on the Filipino people,” the House leader said. “Let’s work together to stamp out this cartel and spare our people from further suffering caused by their unscrupulous trade practices.”
“The extensive hearings conducted by the House have already provided good leads which our authorities can follow to build an airtight case and prosecute those involved,” Romualdez added.
He aired this call after Marikina City Rep. Stella Luz Quimbo named interconnected personalities and business entities involved in the onion trade that – taken together with their operation, resources and influence – bear the hallmarks of a cartel.
Romualdez noted that among others, unfair trade practices may be prosecuted under the Philippine Competition Act, which penalizes businesses found to have engaged in anti-competitive agreements with a fine of up to P100 million and imprisonment of up to seven years.
The fines may be tripled if trade of basic necessities, including agricultural products identified by the Price Act, is involved in cartel or abuse of dominance violations. — Delon Porcalla