DA Considers Blacklisting ‘Onion Cartel’ Named by Anti-Trust Body

The Department of Agriculture (DA) is considering blacklisting several importers identified as part of an “onion cartel” by the Philippine Competition Commission (PCC). These importers have been charged and fined for allegedly colluding to manipulate onion prices, which soared to over P700 per kilogram in 2022.

Agriculture Secretary Francisco Tiu Laurel Jr. commended the PCC for taking action against 12 importers accused of violating the anti-cartel provisions of the Philippine Competition Act (PCA). “I’m happy with the decision of PCC. It should be a sign to all smugglers and unscrupulous traders that we will go after all of them,” Tiu Laurel stated. He emphasized that such behavior exploits farmers and consumers and poses a threat to the economy.

The PCC investigation revealed that these importers operated as a cartel, allocating the supply of imported onions among themselves through the Sanitary and Phytosanitary Import Clearances (SPSICs) issued by the DA-Bureau of Plant Industry (DA-BPI). They also allegedly colluded by sharing sensitive business information—including prices, suppliers, customers, and distribution details—dating back to 2019.

The “onion cartel” was found to have controlled 50% of the market when onion prices peaked over P700 per kilogram in 2022. In response, the PCC’s Enforcement Office has recommended a collective fine of P2.4 billion against the importers, marking the largest penalty in the history of the anti-trust body.

In light of these findings, Secretary Tiu Laurel announced that the DA is considering additional measures, such as blacklisting the traders involved and withdrawing the accreditation of cold storage facilities implicated in the scheme. Although the collusion occurred before he assumed office in November, Tiu Laurel expressed disappointment at the actions of these traders, who were supposed to ensure a stable supply of onions.

The PCC’s investigation included a September 2023 raid, conducted under the Rules on Administrative Search and Inspection (RASI) issued by the Supreme Court in 2019, which yielded extensive documents and electronic data related to the companies’ trading activities.

The crackdown on the “onion cartel” comes in the wake of skyrocketing onion prices in 2022, when P191 million worth of smuggled onions were seized from container vans at various ports. Under the PCA, entities involved in anti-competitive agreements face fines of at least P110 million, but due to the classification of onions as a prime commodity, these fines were tripled to P330 million.