Onion-skinned

The price of onions could literally make one cry. This is the price that we consumers have to pay for the sake of local onion producers decrying the unfair competition of imported ones. Acting on the complaints of local producers, the government – through the Bureau of Customs (BOC) – cracked down hard against all suspected smuggled imported red and white onions and seized them.

Result: Onions disappeared. Then its prices further went up to unprecedented levels.

Latest market monitoring of the Department of Agriculture (DA) showed that the price of local red onions now range from P500 to as high as P720 per kilo while local white onions are slightly lower at P600 a kilo.

But as far as the Philippine government is concerned, the policy choice is clear. President Ferdinand “Bongbong” Marcos Jr. (PBBM) wants to protect our country’s agriculture sector that includes onion producers, Bureau of Customs Commissioner Yogi Filemon Ruiz declared in our Kapihan sa Manila Bay news forum last Wednesday. As concurrent Agriculture Secretary, Ruiz cited the policy bias of PBBM is naturally to protect our local agricultural producers.

Of course, it goes without saying the President has to balance this policy bias to what will serve the greater national interest. The Chief Executive blamed earlier the “imported inflation” as behind the upsurge in the prices of basic goods and food products, largely due to the disruption of oil supply following the Russian invasion of Ukraine last February.

The added burden though is the fact that our local producers could not compete at par with agricultural goods imported from countries that provide large subsidy and other kinds of support to their farmers. State subsidies and government support mean lower costs of production. This is the competitive edge of farmers abroad that Filipino farmers do not enjoy.

The Customs chief, however, argued the supply shortage in several of our basic agricultural products such as onions, sugar, and rice is the situation that emboldens “unscrupulous” importers to smuggle them. The low supply and high demand would translate to higher profit to both the importers and smugglers as well.

For this year, BOC has conducted 107 seizures of agricultural products worth P1.23 billion. Of this total, Ruiz informed us, some P191 million worth of onions were seized because they came in without necessary permits from the DA. These imported red and white onions brought in containers are still being held at various BOC ports across the country.

These were part of the larger 671 total seizures of all smuggled goods that were interdicted since January this year, Ruiz citing the BOC report. Based on estimated market value, these seizures have total worth of P23.58 billion that could otherwise have added to the revenue collections of the government if proper duty and tariffs have been paid.

Apart from onions, smuggling of sugar also remained rampant in the country following the recent shortage of the beverage-grade sweetener. In fact, PBBM already ordered the DA to expedite the importation of 64,050 metric tons of refined sugar through the Minimum Access Volume (MAV) mechanism. According to Ruiz, the BOC has already coordinated with the Sugar Regulatory Administration (SRA) for the complete list of authorized importers and the allocated volume for them.

“Anything over that (volume) is smuggling subject to seizure,” Ruiz declared.

Outright smuggled goods are immediately seized and become condemned products subject to destruction, the BOC chief stressed. Highly perishable goods are thermally destroyed or burned, especially those found with trans-boundary diseases on agricultural products to prevent its spread to our local produce.

Ruiz disclosed, however, PBBM has already instructed them to turn over the smuggled red and white onions to the DA for the regulatory inspection. This was related to the policy decision last week of the President for the BOC “to donate” the smuggled red and white onions to the DA. The President further ordered that these be sold instead in all the Kadiwa stores at P170 per kilo.

At the outset, Ruiz reiterated the BOC is ready to implement PBBM’s instruction while waiting for the DA guidelines on the disposition of these seized onions. “We leave it to their (DA) discretion. If they can certify that these products are fit for human consumption then much better, we are open to that,” Ruiz cited.

“Customs is open donating it to Kadiwa stores. It can also be donated to other government agencies that are directly addressing relief operations,” Ruiz pointed out.

BOC “donations” of seized smuggled goods like “used” or secondhand clothes as relief goods for calamity victims are not exactly allowed by existing law. Erstwhile Department of Social Welfare and Development (DSWD) Secretary Erwin Tulfo earlier explained the agency is not allowed to accept and distribute “used” clothing because it could carry and spread infectious diseases.

Incidentally, Tulfo made this stand during our Kapihan sa Manila Bay last Nov. 23, or this was a day after his confirmation as DSWD Secretary was by-passed the second time by the Commission on Appointments. Tulfo was not re-appointed and PBBM named former Star reporter Eduardo Punay who is one of the DSWD undersecretaries as officer-in-charge.

Ruiz has been getting the flaks from certain lawmakers for the seeming impunity of smuggling of onions, and other agricultural products. He shrugged off criticisms as part of the hazards of his job. He suspects certain shadowy groups hurt by the BOC anti-smuggling drive could be the ones orchestrating the smear drive against him.

“We have identified them (smugglers) while others want to be the Customs Commissioner. Let’s drink coffee to that,” Ruiz quipped and chortled.

The Customs chief conceded government functionaries must not be overly sensitive, or emotionally be affected to the verbal attacks or criticisms of others. Or officials like him must not be onion-skinned, so to speak.