After nine hearings, the House of Representative’s Committee on Agriculture and Food revealed that an agricultural trader previously tagged in the smuggling of basic commodities allegedly jacked up onion prices as it is the supposed operator of the “biggest onion cartel” in the country.
According to a CNN report, Marikina Rep. Stella Quimbo, vice chairperson of the House Appropriations Committee, accused Lilia “Lea” Cruz of causing the artificial spike in onion prices late last year until the early part of 2023 through companies involved in all levels of the value chain.
In a statement, Quimbo said: “Leah Cruz operates the biggest onion cartel in the country. She does this through an SEC-registered corporation called Philippine VIEVA Corporation.”
Cruz established the Philippine Vegetable Importers, Exporters and Vendors Association (PhilVIEVA), which Quimbo claimed is being used for operating the alleged onion cartel.
The lawmaker explained that Cruz can command the price of onions through PhilVIEVA, which controlled the onion supply by buying cheaply from farmers, then cornering the importation of onions.
“Paano ginagamit ang PhilVIEVA para pataasin ang presyo ng sibuyas?” Quimbo said.
“To be able to manipulate the price, you must have control of a lot of supply of onions. This is where PhilVIEVA’s power comes from,” she added.
The House began its investigation into the alleged price manipulation of onions late last year, when its price spiked to as much as ₱700 per kilo.
Cruz denied in one of the hearings that she’s involved in the smuggling of basic commodities. In 2014, she was accused in a congressional hearing of monopolizing the importation of onion and garlic. She said that the allegation was false.
Quezon Rep. Mark Enverga, chairman of the House Committee on Agriculture and Food, said that more hearings are possible to tie loose ends.
Additionally, a report containing the panel’s recommendations could be finalized in two weeks.
