Baku:Filipino authorities have imposed a fine of 1.76 billion pesos ($27.9 million) on six companies for creating an "onion cartel" that led to a dramatic increase in the price of onions.
According to Ghana Web, in 2022, the cost of onions, a staple in Philippine households, soared to an unprecedented 800 pesos per kilogram, surpassing the daily minimum wage and even the price of meat. This situation put pressure on newly-elected President Ferdinand Marcos Jr, who had pledged to reduce rising food costs.
The Philippine Competition Commission (PCC) announced that the fine, the largest since its establishment in 2016, was levied against companies involved in importing, storing, and shipping onions. For several months from late 2022 through early 2023, onions became scarce, leading to smuggling attempts and their use as a status symbol, such as being featured in wedding bouquets.
Authorities responded by approving emergency onion imports, and President Marcos committed to pursuing those responsible for the shortage, highlighting the severe impact on Filipinos suffering from starvation and poverty. The crisis subsided as local harvests replenished the market in 2023, stabilizing prices.
A parliamentary committee investigating the crisis identified a cartel as the cause of the "artificial" price surge. The PCC's findings revealed that the implicated companies controlled nearly half of the approved onion import permits in 2020 and 2021 through an illegal market allocation scheme. The commission emphasized its dedication to holding cartels accountable and protecting consumers from anti-competitive practices.
Furthermore, the PCC noted that these companies could also face criminal charges from the Department of Justice.