The Makabayan bloc has filed a resolution calling for the immediate suspension of the onion importation ordered by the Marcos administration, as this “will seriously affect the livelihood of the already marginalized local farmers.”
In House Joint Resolution 18, Gabriel Rep. Arlene Brosas, Act Teachers Rep. France Castro and Kabataan Rep. Raoul Manuel said contrary to the supposed supply problem in onions being projected by the Marcos administration, price manipulation, profiteering, and hoarding of onions by cartels and large traders caused the price of the commodity to skyrocket.
The bloc added that Marcos, who acts as Agriculture Secretary, approved in January 2023 the importation of 21,060 metric tons (MT) of onions—at a time when the country is entering the harvest season for onions.
“The rising prices of onions in the market is not merely a problem on the supply but a manifestation of the long-standing issue of price manipulation, profiteering, and hoarding of onion cartels and large traders,” Assistant Minority Leader Brosas said.
In 1995, the Philippines joined the World Trade Organization (WTO) and abolished most of its quantitative restrictions on agricultural products. It then introduced tariffication and tariff reduction programs for all agricultural products, signaling the full liberalization of agriculture.
Brosas also said relying on importation as supposedly a means to control prices and address the gap in supply contradicts the long-term interests of the people for agricultural local production development.
“What the government must do is to strengthen local production and provide subsidy for distraught farmers. But with Marcos Jr. resorting to importation, big cartels and hoarders are now off the hook in this issue that has gravely affected the poor.”
Based on the approved order signed on January 6 but only released publicly on January 10, the Makabayan bloc said the importation is supposed “to address the supply gap prior to peak harvest in 2023 and to stabilize the continuous increase in price of fresh onions in the market.”
Of the total 21,060 MT of onions to be imported, 3,960 MT will be fresh yellow onions, and 17,100 MT will be fresh red onions.
The solons said the local production of agricultural products is also threatened by the uncontrollable smuggling of onions and other agricultural products from China.
The bloc said farmers of San Jose, Occidental Mindoro have asked the government to halt the importation of onions ahead of the harvest season as this could cause them to incur losses.
Instead of resorting to importation, the lawmakers said farmers should be provided with product subsidies and “intensive support” to strengthen local production.
Also, the bloc said the President only eliminates the liability of the hoarders and cartels responsible for manipulating the supply and price of goods by importing agricultural products to solve inflation.
In a Senate hearing last week, Bureau of Plant Industry (BPI) Director Glenn Panganiban disclosed that importers only applied to bring in 25 percent of the volume approved under the importation program. This would translate to about 5,000 MT in applied import volume.
The BPI only entertained applications for the issuance of sanitary and phytosanitary import clearances (SPSICs) for the onion import program until January 13.
Panganiban also said importers usually use up to half of the approved and issued SPSICs. This would mean that the actual onion import arrivals this month could be even lower than 5,000 MT.
“Only half applied [for the onion importation]. And usually, that [approved volume] does not arrive in the country totally. So we are expecting less than 5,000 MT [to arrive],” Panganiban told the Senate Agriculture and Food Committee, which heard stakeholders’ views on a Senate resolution inquiring into soaring prices of local onions.
He assured lawmakers that the BPI would follow to the letter the onion import rules, particularly rejecting late SPSIC applications as well as denying the entry of any shipments that would enter the country beyond January 27.
Image credits: Nonoy Lacza