In the Philippines, the Competition Commission (PCC) has disclosed the identities of twelve traders and importers implicated in an alleged onion cartel, which reportedly influenced the market in 2022. During a press briefing at the PCC's Quezon City headquarters, Enforcement Office Director Christian Loren De Los Santos announced that charges were filed against the Philippine Vieva Group of Companies, Inc.; Tian Long Corp.; La Reina Fresh Vegetables & Young Indoor Plants, Inc.; Yom Trading Corp.; Vegetable Importers, Exporters & Vendors Association of the Philippines; and Golden Shine International Freight Forwarders Corp. for cartel-like activities.
Additionally, individuals Lilia Cruz, Eric Pabilona, Renato Francisco Jr., Letty Baculando, Mark Castro Ocampo, and Nancy Callanta Rosal were named for their roles in the anti-competitive practices in the onion trade. These practices included market allocation and the anti-competitive exchange of business information, in violation of Section 14 of the Philippine Competition Act (PCA).
The charges stem from an investigation that utilized a dawn raid in September 2023, marking a first for the PCC's Enforcement Office. This investigative approach allowed the team to gather evidence directly from the premises of the accused, revealing that the cartel's activities dated back to 2019 and had a significant impact on onion prices, particularly in the latter part of 2022.
As a result of these findings, the PCC has recommended imposing fines totaling PHP2.42 billion on the involved entities, with individual fines ranging from PHP113.2 million to PHP330 million. The evidence suggested that the cartel's actions contributed to the surge in onion prices, with the accused controlling over 50% of the onion market volume from 2019 to 2022.
In response to these allegations, the Department of Agriculture (DA) has barred the implicated traders and importers from transacting with the Bureau of Plant Industry (BPI), even if they hold valid registrations beyond 2024. This move is part of broader efforts to stabilize onion prices and prevent market manipulation. The DA has also approved the importation of 16,000 metric tons of yellow onions to ensure price stability through the holiday season.
The PCC's actions are supported by the DA, which is committed to preventing unfair trade practices and ensuring that collusion does not affect market prices. Agriculture Secretary Francisco Tiu Laurel Jr. has expressed a strong stance against those exploiting the market, indicating that the department is considering blacklisting and possibly withdrawing accreditation from involved parties.
Source: Philippine News Agency