The Kilusang Magbubukid ng Pilipinas (KMP) vehemently condemns the Department of Agriculture’s (DA) blatant denial of the existence of cartels in the agricultural sector. This statement of Agriculture Secretary Francisco Tiu-Laurel is a brazen attempt to cover up the rampant smuggling, hoarding, and price manipulation that have long strangled Filipino farmers and burdened consumers.

KMP chairperson Danilo Ramos lambasts the DA’s whitewashing, asserting that such dismissals embolden profiteers and deepen the exploitation of agricultural producers. “The soaring prices of rice, onions, and other basic goods—despite ample supply—are undeniable proof of market manipulation by powerful syndicates,” Ramos declared. Such practices harm both producers and consumers, leading to artificial shortages and inflated prices. This is economic sabotage orchestrated by cartels, with the DA either complicit or utterly incompetent in addressing the crisis.”

The statement of the DA secretary comes despite a previous admission by Department of Finance (DOF) director Jolly La Rosa during a legislative hearing by the Quinta Committee that price manipulation by cartels and unscrupulous businessmen is a highly probable factor behind persistently high rice prices.

“The Quinta Committee focused on top importers because there were clear signs of speculation in the rice import market, such as swelling commercial inventories, delays in withdrawals by importers, and imports surpassing USDA projections. The top 10 rice importers controlling 36 percent of total inbound shipments were identified by the Committee as Bly Agri Venture Trading, Atara Marketing Inc., Orison Free Enterprise Inc., Macman Rice and Corn Trading, King B Company, Sodatrade Corp., Lucky Buy and Sell, Vitram Marketing Inc., Nan Stu Agri Traders, and RBS Universal Grains Traders Corp. Some of these entities were found to have interlocking directorships, raising concerns of coordinated price manipulation and anti-competitive practices.

SEC records revealed interlocking directorships between RBS Universal Grains Trader Corp. and Sodatrade Corp., which could have enabled coordinated business strategies and anti-competitive practices. Bly Agri Venture Trading, Macman Rice and Corn Trading, King B Company, Nan Stu Agri Traders, and Lucky Buy and Sell were found to be unregistered with the SEC and may be operating as sole proprietorships under the Department of Trade and Industry.

Evidence of speculative activities emerged following reports by the Philippine Ports Authority of 800 containers of rice imports lying idle in September 2024, which may have indicated hoarding. The landed price of imported rice dropped by Php11 per kilo year-on-year, yet domestic prices rose from Php51 to P55.30 per kilo. The widening gap between landed and domestic prices, from Php3 in 2023 to P20 in 2024, further suggests deliberate price manipulation.

In May 2023, KMP supported legislative efforts to strengthen the Republic Act 10845, the Anti-Agricultural Smuggling Act of 2016, to include hoarding, profiteering, and cartel operations as heinous crimes. This initiative underscores the urgent need to dismantle organized groups that exploit the agricultural sector for profit at the expense of national food security.

The farmers’ group has consistently criticized the DA’s reliance on rice importation. For instance, the importation of onions during the local harvest season in early 2025 was seen as detrimental to local farmers, driving down farmgate prices and benefiting a select group of importers. “The government’s importation policy amid harvest season is a deliberate act of economic sabotage that will only drive down farmers’ incomes while benefiting a few importers,” Ramos remarked.

The DA’s assertion of the absence of cartels raises questions about the effectiveness of its monitoring and regulatory mechanisms. KMP urges the DA to conduct thorough investigations and implement stringent measures to combat market manipulation. “Recognizing the problem is the first step toward providing solutions. . We demand DA to acknowledge the realities on the ground and do its job to protect the interests of our farmers and ensure affordable prices for consumers,” Ramos concluded. ###