A PYMNTS Company

Philippines: Watchdog may probe garlic ‘cartel’

By  |  July 12, 2017

One strong indication of the presence of cartels is a sudden, irregular change in market prices, and this is what has gotten the chair of the Senate agriculture committee angry with respect to the supply and pricing of garlic.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to Senator Cynthia Villar, prices have fluctuated sharply between May and June.

    This time round, the antitrust watchdog may be brought in to investigate.

    Economist Arsenio Balisacan, chairman of the Philippine Competition Commission (PCC), elaborated on the situation that has caused the alarm bells to be sounded by the senator.

    “If there is a cartelistic arrangement or abuse of dominance in the market, ang mangyayari doon biglang tataas ang presyo, butover time bababa rin [what will happen is that prices will abruptly spike, but decline over time].”

    For now, the agency will work on the national garlic development plan to increase local production.

    That involves identifying more areas for growing garlic, to lessen the burden on Ilocos, Nueva Ecija and Mindoro, and improving productivity so farmers could plant more than once a year.

    Full Content: The Australian

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.