The Philippine Competition Commission (PCC) is about to start probing alleged cartels in the onion industry as prices of the crop have declined significantly. Prices of onion dropped from a high of P30 (€0.51) per kilogram before harvest to only about P15 (€0.25) per kilo.
PCC decided to step in and assist the Department of Agriculture after trading firms closed down cold storage facilities, forcing farmers to sell at a lower price. “PCC will look at the alleged refusal of storage access to onion farmers in favor of large traders and will also evaluate if there are business agreements that are anticompetitive or enablers of cartelistic behavior,” the agency said.
“Specifically, PCC will examine whether there are competition concerns in the onion industry such as restriction of storage space or price manipulation by cartels, or whether the storage concerns are natural consequences of supply conditions,” it added.
PCC maintained that cold storage facilities form an important part in the value chain to prolong the shelf life of onions after harvest season.
All of PCC’s actions are directed by its mandate to promote fair market competition, advance consumer welfare, and penalize violators of the Philippine Competition Act.
Philstar.com reports on the fine of P100 to P250 million, and imprisonment of up to seven years, for found to have breached the competition law.
