Testing gov’t resolve vs cartels
Filipinos are already groaning under the weight of high food prices that have weakened their purchasing power. But the worst may still be ahead.
The World Bank predicted in its latest Commodity Markets Outlook that food commodity prices will rise by about 10 percent this year and another 7 percent in 2027, driven by factors ranging from the continuing Middle East conflict, which has pushed energy prices to a four-year high, to the El Niño phenomenon threatening agricultural production.
This grim outlook lends urgency to Sen. Francis Pangilinan’s call for the government to intensify its crackdown on hoarders, profiteers, and cartels that may exploit the intensifying El Niño crisis to profit at the expense of struggling Filipinos.
The departments of trade, agriculture, and health, together with the Price Coordinating Council, must strengthen market monitoring and strictly enforce price freezes on basic necessities in areas placed under a state of calamity.
At a time when Filipinos are besieged by multiple crises, the government’s priority must be to protect consumers from unreasonable price increases.
Nefarious schemes
Section 6 of the Price Act expressly prohibits hoarding, profiteering, and cartels involving basic necessities and prime commodities. Yet these prohibitions have not stopped callous individuals from exploiting every opportunity to make money, even during an unfolding crisis.
The Department of Science and Technology-Philippine Atmospheric, Geophysical and Astronomical Services Administration has warned that a Strong El Niño is already active in the Pacific and could intensify into a “very strong” episode in the last quarter of the year, persisting through the first half of 2027.
Below-normal rainfall could trigger severe agricultural dry spells and water supply shortages, threatening food security, energy production, public health, and the broader economy.
The Department of Agriculture (DA) estimated that damage to crops, livestock, and poultry has already reached P8.57 billion as of Oct. 21, with losses expected to climb.
The prospect of shortages could embolden hoarders and cartels, forcing consumers to pay even more for basic necessities.
The government must therefore use its considerable powers to pursue those responsible for illegal price manipulation, targeting not just frontline sellers but the big players behind these nefarious schemes.
Predatory practices
“Enforcement must not end with frontline sellers. We must target the very top,” Pangilinan said, stressing that the owners and masterminds of syndicates involved in hoarding and price manipulation must be held accountable.
Despite penalties under the Price Act of five to 15 years’ imprisonment and fines ranging from P5,000 to P2 million, these predatory practices persist.
This reflects weak and inconsistent law enforcement, compounded by suspicions that some public officials and employees may be protecting or aiding violators who are making a profit off the backs of vulnerable groups such as farmers.
In Benguet, the country’s vegetable basket, farmers and traders have protested the influx of smuggled broccoli, which has driven local selling prices down to as little as P5 per kilo from P80 to P150.
While consumers may welcome cheaper vegetables, these prices come at the expense of local farmers who cannot compete with smuggled produce entering the country without the required import and phytosanitary permits and taxes.
La Trinidad Mayor Roderick Awingan has urged the DA to stop the entry of smuggled broccoli, warning that illegal imports threaten local farmers’ livelihoods. Producers of carrots and other vegetables have raised similar concerns.
Public cynicism
These complaints have been repeated for years, reinforcing public cynicism over the government’s inability to stop erring businesses.
The Philippine Competition Commission recently announced a P1.76-billion fine against suspected cartels found to have conspired to manipulate onion prices beginning in 2019. Their actions contributed to prices soaring to as high as P800 per kilo in late 2022, from just P80 to P100 earlier that year.
Yet many of those identified had already been charged in 2024, raising questions about the government’s resolve to punish companies found to have manipulated the market.
Evidence of anti-competitive practices continues to emerge, making it imperative for authorities to dispel suspicions of collusion or leniency toward violators.
The government must show that it is serious about protecting consumers and safeguarding the livelihoods of farmers and other players in the agricultural sector. Going after only small-time sellers will not solve the problem.
Holding the big players accountable and putting the guilty behind bars would go a long way toward restoring public trust in a government that should serve the people, not the cartels.
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