Prices of red onion soared to P600 per kilogram at the Marikina Public Market in December 2022— GRIG C. MONTEGRANDE
MANILA, Philippines — Speaker Ferdinand Martin Romualdez believes the newly signed law declaring agricultural smuggling and other illegal activities related to the industry as economic sabotage is a “turning point” for farmers and the country’s food self-sufficiency bid.
In a statement on Thursday, Romualdez said the administration sent a strong message against agricultural smuggling with President Ferdinand Marcos Jr.’s signing of Republic Act No. 12002 or the Anti-Agricultural Economic Sabotage Act.
“This law marks a critical turning point in our fight to defend the livelihood of Filipino farmers and fisherfolk and secure affordable food for all,” Romualdez said after Marcos signed the measure.
“With the Anti-Agricultural Economic Sabotage Act in place, we are sending a clear message: there will be no tolerance for those who manipulate the market and jeopardize our food supply,” he added.
Marcos said the new law would classify smuggling, hoarding, profiteering, and cartel operations involving agricultural and fishery products as economic sabotage, which is a non-bailable offense punishable by life imprisonment.
The law also creates the Anti-Agricultural Economic Sabotage Council which the President will head, and the Anti-Agricultural Economic Sabotage Enforcement Group.
“Let me be clear: This law does not just target the masterminds; it holds all accomplices accountable—financiers, brokers, employees, even transporters,” Marcos said during the ceremonial signing of the measure.
READ: Marcos signs Anti-Agricultural Economic Sabotage Act into law
According to Romualdez, the law would prevent a rapid rise in the price of goods due to hoarding.
“For far too long, the greed of a few has resulted in the suffering of many, driving up food prices and hurting the very people who work tirelessly to provide for our nation,” he said. “This law ensures that those who engage in these exploitative practices will face the full weight of the law.”
“This law is a major victory for our farmers, fisherfolk, and consumers, and it underscores our unwavering commitment to safeguarding our nation’s food security,” he added.
One of the first problems encountered by the Marcos administration in June 2022 was a rapid rise in the price of onions, starting from P250 to P400 per kilogram, before skyrocketing to P600 to P720 during the holiday season.
The issue prompted Congress to probe possible collusion between importers, cold storage facility owners, truckers, and traders as economic minds in the House believe an artificial shortage was created.
In May 2023, Marikina 2nd District Rep. Stella Quimbo and House committee on agriculture chairperson Quezon 1st District Rep. Wilfrido Mark Enverga presented a matrix showing how smugglers take advantage of farmers and manipulate the prices of products, particularly onions.
Quimbo explained that since farmers would need cold storage to keep onions fresh, traders who are conniving with cold storage operators would falsely claim that slots are already filled up.
Traders would then urge farmers to sell their produce at lower farm gate prices, as it would be better to earn from the onions than to leave them spoiled due to the lack of cold storage rooms.
Quimbo also said there were cases when storage facilities reserved spaces for big cold storage to ensure that farmers could not deposit their onions anywhere.
READ: Quimbo: Cartels exploit farmers to rule onion industry
With the new law creating the Anti-Agricultural Economic Sabotage Council and the Anti-Agricultural Economic Sabotage Enforcement Group, farmers and consumers can be assured that a multi-agency body will constantly oversee the enforcement of the measure, Romualdez said.
Among the members of the council are the Department of Agriculture, the Department of Justice, the Department of Finance, and the Anti-Money Laundering Council.
“This council will be the backbone of our efforts to protect the integrity of our food supply chain by coordinating various agencies and leveraging their expertise, ensuring we can respond swiftly and decisively to any attempts to manipulate the market,” Romualdez said.
“As we move forward, we must remain vigilant and steadfast in protecting our agricultural sector. This law is a crucial step in ensuring that our farmers and fisherfolk can thrive, and that Filipino families can access affordable food,” he added. “The signing of the Anti-Agricultural Economic Sabotage Act is a strong signal that we will no longer allow a few to profit at the expense of many. The protection of our agriculture and the welfare of the Filipino people are our top priorities.”