MANILA, Philippines — Stiffer penalties await those who smuggle agricultural products as President Marcos yesterday signed into law a measure declaring the act as economic sabotage, a crime he described as a “betrayal” and a threat to the economy and national security.
Republic Act 12022 or the Anti-Agricultural Economic Sabotage Act seeks to protect farmers, fisherfolk and consumers by defining and penalizing crimes related to agricultural economic sabotage like smuggling, hoarding, profiteering and cartel activities.
It establishes a daily price index, introduces registration requirements for businesses dealing with agricultural goods and establishes an Anti-Agricultural Economic Sabotage Council led by the President.
“Economic sabotage in agriculture is not simply a tale of dubious deals and inflated profits; it manifests as well as hunger, desperation, betrayal,” Marcos said during the signing ceremony.
“Let us then acknowledge the gravity of the situation: these crimes threaten not only our economy but our national security as well. It jeopardizes the livelihood of hardworking Filipino farmers and fisherfolk and it threatens the food sustainability of our communities,” he added.
According to Marcos, the Philippines lost a “staggering” amount of more than P3 billion to agricultural smuggling in 2023 alone. In less than nine months this year, authorities seized over P230 million worth of smuggled agricultural products.
“Every sack of smuggled rice, every under-the-table onion deal, every substandard meat sneaking past our quarantine checks – these are not just numbers; they represent lives, families and futures that are being compromised,” the Chief Executive said.
He also called on cartels that “manipulate the prices and control supplies,” saying the signing of the new law “will set in motion transformative outcomes.”
The newly enacted law repeals RA 10845 or the Anti-Agricultural Smuggling Act of 2016.
One of the priority measures of the administration, the law covers rice, corn, beef and other ruminants, pork, poultry, garlic, onion, carrots, other vegetables, fruits, fish, salt and other aquatic products in their raw state or which have undergone the simple process of preparation or preservation for the market within the primary and post-harvest stages of the food supply chain, palm oil, palm olein, raw and refined sugar and tobacco.
Under the law, a daily price index will monitor and publish prevailing retail prices of agricultural and fishery products in all regions to ensure transparency and accountability.
Marcos noted that smuggling, hoarding, profiteering and cartel operations involving agricultural and fishery products would be classified as economic sabotage – a non-bailable offense punishable by life imprisonment and fines up to five times the value of the goods involved.
“And let me be clear: this law does not just target the masterminds; it holds all accomplices accountable – financiers, brokers, employees, even transporters,” the President said.
The Court of Tax Appeals shall have exclusive jurisdiction for cases related to agricultural economic sabotage and shall have the authority to handle and decide on criminal proceedings under the law.
The Anti-Agricultural Economic Sabotage Council and Enforcement Group will be formed to ensure the proper implementation of the law, coordinate investigations and conduct visits and inspections to enforce compliance with the measure.
The Council will consist of the President or his designated permanent representative as chair and the chiefs of the Agriculture, Justice, Finance, Interior and Local Government, Transportation and Trade and Industry departments, the Anti-Money Laundering Council and Philippine Competition Commission as members.
The enforcement group, meanwhile, will be composed of the National Bureau of Investigation, Philippine National Police, Philippine Coast Guard and Department of Finance.
“This law provides for the development of a special team of prosecutors nationwide to expedite cases related to agricultural sabotage. No longer will these cases gather dust; they will be prioritized and they will be resolved urgently,” Marcos said.
Marcos urged the public to be vigilant, to report wrongdoing and to hold accountable “those who seek to undermine our nation.”?
NFA: Enough rice stocks
National Food Authority Administrator Larry Lacson yesterday said the agency has enough rice stocks that can be tapped during calamities as the total NFA inventory reached 157,000 metric tons or 3.1 million bags of rice.
“We can use these stocks in case of an emergency. We are safe in terms of volume (of rice) in the entire Philippines,” Lacson said.
He added that the total rice stock can feed the entire population for five days.
According to Lacson, the NFA has at least 288 warehouses nationwide but only 245 are operational as the rest need repair.
The NFA official also confirmed a drop in the farmgate price of palay amid the impact of recent rains.
“Based on our monitoring because of the recent rains, traders brought down their buying price between P16 and P17 per kilo,” Lacson added.
The NFA is currently buying palay from the farmers between P21 and P23 per kilo, according to the NFA official.
“Many farmers were happy because of our buying price. They were able to earn in the last harvest,” he said.
The NFA has an existing arrangement with the Department of Agriculture (DA) and the National Irrigation Administration regional offices for the use of trucks to transport the palay of farmers to the agency.
“If the traders learn that we will get the palay of farmers in the fields, they do not lower their buying price too much,” Lacson said.
He said the NFA is also providing drying facilities to farmers for free.
“They can dry their palay and after that, they can immediately sell their produce directly to NFA,” he added.
He also hopes that the NFA will again sell rice in the markets once Congress approves the amendments to the Rice Tariffication Law, allowing the agency to sell the staple anew.
Abandoned imported rice
The DA reported that two of the 888 shipping container of imported rice at the Port of Manila are considered abandoned after being left unclaimed for more than 30 days.
In a radio interview, Agriculture Assistant Secretary and spokesman Arnel de Mesa said that one shipping container has been sitting for 275 days at the Manila Port while the other container has been there for 160 days.
“Based on the rule of the Philippine Ports Authority (PPA), if the container van is unclaimed for more than 30 days, it is already considered abandoned,” De Mesa said.
He added that each container van contains at least 540 bags of imported rice.
“The Bureau of Plant Industry will check the quality of rice as we are concerned about food safety,” De Mesa added.
According to De Mesa, the PPA should have informed the DA of the unclaimed rice shipments.
“Under the Rice Tariffication Law, the National Food Authority lost its mandate to inspect warehouses, including the container vans at the piers,” De Mesa noted.
He said that based on PPA’s report, half of the 888 shipping container were already released after being claimed by the importers.
He warned importers that they may face possible charges of hoarding if they leave their imports for a longer time, adding that there should be timing in the importation and distribution of imported rice to prevent problems in the food value chain.
Officials of the House of Representatives also appealed to importers to claim their shipments of imported rice that remain at the Port of Manila.
Speaker Martin Romualdez “urged rice importers to expedite the release of tax-paid shipments and promptly pull out their shipments,” according to a statement from the Bureau of Customs yesterday.
Romualdez said the consignees should also “refrain from illegal hoarding activities lest they face the full force of the law.”
He also said to immediately pull out the stalled rice shipments to “ensure adequate rice supply and avoid potential price hikes.”
P5 billion additional profits
Rice traders and importers pocketed over P5 billion in additional profits since the government cut the tariff on the staple to 15 percent, a farmers’ group claimed yesterday.
The Federation of Free Farmers estimated that the rice importers saved P5 billion in tariff payments since Executive Order 62 took effect last July.
These savings, the group argued, were not passed on for the benefit of the consumers, citing the minuscule drop in retail rice prices.
“Since then, official data from the Philippine Statistics Authority show that retail prices of both regular and well milled rice declined by only P0.40 per kilo,” the group said yesterday. – Bella Cariaso, Ghio Ong, Jasper Emmanuel Arcalas
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