Smuggled onions may ruin Pinoy farmers — SIPAG

Onion farmers fear that a resurgence of onion smuggling in the country could widen the glut now plaguing the commodity and ruin domestic producers especially in the absence of solid government action. “There is virtually no movement in our stocks as of April. If there was any movement at all, it was only about 15 to 20 percent," said Sibuyas ng Pilipinas Ating Alagaan (SIPAG) Foundation president Francisco Collado. The foundation is looking forward to the impact of an Agriculture Department order halting the issuance of import permits until Dec. 31, 2010. The order was issued by the Agriculture Department when the onion industry had a production surplus of 124,900 metric tons (MT) early this year. At a per capita consumption of 1.1 kilograms, Philippine onion demand only amounts to 101,200 MT, the foundation said. As of September, onions in storage were about 1.4 million bags or 35,000 metric tons (MT), according to SIPAG. Based on an average monthly consumption of 8,433 MT, the remaining volume is good until January 2011, the group added. Onion sells wholesale at P30 to P35 per kilo, and retails at P45 to P50 per kilo. “The department also suggested the creation of an anti-smuggling group so we can confiscate imported onions from the market," said Alfredo Lim, a Divisoria-based onion trader. Lim said Agriculture Secretary Proceso Alcala advised Plant Bureau director Lito Baron to create and accredit an onion farmers association but nothing has come out of that since the meeting. SIPAG said the local onion industry has been reeling from the entry of illegal onions in the last ten years. Smuggled onions are cheap, “making it hard for the local produce to compete head on," the foundation said. SIPAG also asked the Agriculture Department to issue a policy on punitive measures against smuggling in coordination with the Department of Justice. Red onions usually come from India, China, and Taiwan, the yellow variety from New Zealand and Holland. According to SIPAG, only 323 of 525 issued permits were used based on a Bureau of Plant Industry survey. However, Customs Bureau records showed that it has so far accommodated 600 permits. Imported onions have displaced an estimated 500,000 bags of locally produced onions, SIPAG noted. The foundation alleged that an import permit can be sold for P200,000, while taking smuggled onions through the Customs Bureau entails a P400,000 payoff per import permit. As government intensified its anti-smuggling drive, SIPAG officials said unscrupulous traders are shifting the entry point from from Manila to Cagayan de Oro and Davao. Smugglers are also using Singapore as a trans-shipment route to evade detection, SIPAG added. —JE/VS, GMANews.TV