Fund creation proposed to support local onion farmers
Credit to Author: Sheila Crisostomo| Date: Tue, 13 Jun 2023 00:00:00 +0800
MANILA, Philippines — After confirming the presence of an onion cartel in the country, three key members of the House of Representatives have proposed the establishment of an onion competitiveness enhancement fund (OCEF) for the Philippine onion industry to allow onion farmers to benefit from tariff revenues.
Quezon 1st District Rep. Wilfrido Mark Enverga, Marikina City 2nd District Rep. Stella Luz Quimbo and Ako Bicol party-list Rep. Elizaldy Co have filed House Bill 8462, which proposes to set up the fund to “support local farmers and boost their production efficiency.”
In the long run, farmers will become “sufficiently capacitated to compete globally,” according to the three lawmakers.
Enverga and Quimbo led the inquiry of the House committee on agriculture and food into the onion smuggling and cartel in the country.
After nine marathon hearings, the panel confirmed that the Philippine Vegetable Exporters and Vendors Association Philippines Inc. group of companies owned by Lilia or Leah Cruz was the main player in the “onion cartel” in the country.
The panel reported that Cruz, tagged as “Sibuyas Queen,” was behind the record-high prices of onions that reached P720 per kilo late last year, along with other firms that conspired in creating an artificial shortage.
HB 8462’s explanatory note stated that in December last year, retail prices of onions in the country peaked at P500-P800 per kilo, costing even more than meat.
“This put the country on the map with the ‘most expensive’ onions in the world,” the bill read.
It underscored that prices of onions contributed significantly to the 8.7 percent inflation rate last January, the highest in 14 years. By May, onion prices declined, but continued to remain high at P150-P200 per kilo, which is 87.5 percent higher than prices in May last year.
Underscoring this, the bill seeks to set up the OCEF to “support the development of the sector to its full potential as a driver of growth for the Philippine agricultural sector.”
The bill stated that all proceeds from the tariff from import of onions shall be set aside and earmarked by Congress for the development and support of programs that will benefit onion farmers.
Such support shall include onion farming outputs and equipment, production technology, farm gate prices, credits, crop protection, storage and cold storage facilities, extension services and market information dissemination, among others.