The leadership of the House of Representatives on Monday directed the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) to wage an all-out war against hoarders and unscrupulous traders of onion and other agricultural products and tap P276 million Kadiwa Food Mobilization Fund to buy the harvest of local farmers.
Speaker Ferdinand Martin G. Romualdez has met with officials from the DA and the DTI to press for a crackdown against cartels manipulating prices of onion and other agricultural products, to bring down prices and help consumers.
Among the action plans firmed up during the meeting is for the DA to tap the P276 million Kadiwa Food Mobilization Fund under the 2023 budget to buy the harvest of farmers at prices higher than the production cost, and sell it through Kadiwa at farm gate prices to force hoarders to unload their stocks.
Earlier, Romualdez warned hoarders and traders manipulating the supply and prices of onion and other agricultural commodities that their days are numbered.
“We cannot allow it anymore. It’s too much,” Romualdez said.
The Speaker asked the DA and DTI officials to help Congress identify these unscrupulous businessmen so they can be invited to the forthcoming congressional investigation on the manipulation of supply and prices of agricultural products.
“If you know who these people are, let us know. We will invite all of them, if not, have the authorities arrest them,” Romualdez added.
Romualdez said the lawmakers recognize the right of businessmen under a regime of free trade to earn profit but it should not come at the expense and misery of the people.
“That’s where we draw the line here in Congress,” Romualdez said.
Romualdez said concerned agencies must ensure closer cooperation and get their acts together to ensure an effective campaign against hoarders and manipulative traders, noting that the agencies give different data on the situation.
“We are also giving a budget to the DA and your agency so we want to make sure you are performing optimally. It doesn’t seem to be the case at the moment—but we want to get there. Because at the end of the day, with the best data, the best feedback, we can make the best policies so we can avoid this situation where some unscrupulous personalities and cartels are taking advantage of the situation,” the Speaker said.
The lawmaker assured the officials from DA and DTI that they would have the full support of the House in waging an all-out war against hoarders and erring traders of onion and other agricultural products.
“We will help you, that’s why we’re here. You will not be powerless. We will use the power of the House. We will shine the light on them and then we will take them to account for this,” he said.
“We will ask our Chairman (of the Committee on Agriculture) all the power and all the resources to get to the bottom of this,” Romualdez added, referring to Quezon Rep. Mark Enverga.
Among the DA officials present during the meeting were Undersecretaries Mercedita A. Sombilla, Undersecretary for Policy, Planning and Regulations; Assistant Secretary Kristine Y. Evangelista, Assistant Secretary for Consumer Affairs; and Assistant Secretary James A. Layug, Assistant Secretary for DA Inspectorate and Enforcement.
Undersecretary Ruth B. Castelo, of Consumer Protection Group; Ms. Werlina Lim, Division Chief, Price and Supply Division; Atty. Marco Maat,Deputy Department Legislative Liaison Officer (DDLLO); and Ma. Concepcion Simeon, Department Legislative Liaison Specialist (DLLS), were among the officials who represented DTI.
Evangelista said that as part of the overall strategy the department will buy the harvest of onion farmers at P50 per kilo, or higher than the P20 per kilo production cost, and sell it at Kadiwa outlets.
“Our target is supposed to be farmgate price, pero dapat kumita si farmer. If our cost to produce is at P20 and then through Kadiwa it’s going to be bought at P50 (per kilo), tapos mabenta natin at farmgate,” Evangelista said.
She clarified that the scheme is not exclusive to onion but may be applied to other agricultural products as well.
Aside from buying the produce of local farmers, the DA will also help them by providing access to cold storage facilities.
“The idea there is to provide all the other infrastructure needed by our farmers to be able to sell their commodity at a good price,” Evangelista said.
Aside from addressing the persistent problem of hoarding agricultural products, Romualdez said that in the long run, the government must invest more in agriculture and provide more support to farmers to enhance productivity.
Image credits: Nonoy Lacza