The Philippine Competition Commission has fined six companies $27.9m for forming an 'onion cartel' that drove up prices to over eight times the daily minimum wage in 2022.
In late 2022, onion prices in the Philippines reached 800 pesos per kilogram, surpassing the daily minimum wage and meat prices. The crisis led to shortages, smuggling attempts, and even the vegetable being used in a wedding bouquet. The Philippine Competition Commission (PCC) has now fined six companies 1.76 billion pesos for their role in the price surge.
The PCC found that the companies controlled nearly 50% of approved onion import clearances in 2020 and 2021. They engaged in an illegal market allocation scheme across importation, storage, and wholesale distribution. The fine marks the largest imposed by the PCC since its establishment in 2016.
Why it matters
The fine addresses a significant economic disruption that affected millions of Filipino households reliant on affordable food.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
The Department of Justice may pursue criminal charges against the companies involved in the cartel.
This section reflects Dumpling editorial interpretation and is provided for context only.