PCC says 12 onion traders attempted to corner import market
THE Philippine Competition Commission (PCC) said 12 onion traders sought to corner the import market in violation of competition law.
The traders imported 76,555 metric tons of red and yellow onion for a period between 2020 and 2021 by sharing out the import permits, known as sanitary and phytosanitary import clearances (SPSIC), among themselves, PCC Director Christian Loren B. Delos Santos, an enforcement officer at the regulator, said at a briefing.
“Respondents effectively controlled more than 50% of the volume of onions imported into the Philippines during the relevant period,” he added.
Mr. Delos Santos said red onion imports during the period amounted to 28,916 MT, with yellow onion imports totaling 47,639 MT.
Agriculture Assistant Secretary and spokesman Arnel V. de Mesa said the volumes imported were significant.
“Our typical requirement is 22,000 MT per month for both red and yellow onion. That includes local production and imports. So if it’s at (70,000) plus that’s huge,” Mr. De Mesa told reporters at a separate briefing.
The PCC has charged the 12 traders with violating Republic Act 10667 or the Philippine Competition Act.
Businesses intending to import agricultural products are required to apply for SPSICs from the Bureau of Plant Industry (BPI) for crops.
“They caused significant harm to consumers by engaging in coordinated anti-competitive conduct such as price-fixing, bid-raiding, output restrictions, and market allocation, the last being the case that we filed,” Mr. Delos Santos said.
The PCC recommended a total fine of P2.4 billion for anti-competitive behavior for all 12 importers.
He added that their actions led to lower supply, higher prices, and poorer quality of onions in the market.
Separately, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the Department of Agriculture (DA) is looking to blacklist the 12 traders.
“In addition to the fines and legal charges, the DA will explore the possibility of blacklisting and withdrawing the accreditation of cold storage facilities whose owners were complicit in this scheme,” he said in a statement.
Mr. De Mesa added that the importers and traders will be barred from transacting with the BPI. — Adrian H. Halili