Hefty penalties await traders, retailers found violating SRP for onion

Traders and retailers who will violate the suggested retail price (SRP) bulletin on red onion that will be issued on Dec 30 may face fines ranging from P5,000 to P2 million, as well as imprisonment of five to 15 years.

Agriculture Assistant Secretary Kristine Evangelista told the Inquirer on Thursday that these are the possible consequences facing non-compliant sellers or traders of the agricultural commodity in local markets.

“What happens first is if a seller (retailer) didn’t follow the SRP, she/he will be asked to submit a show cause (notice). We will give them a letter of inquiry asking them why their prices are high,” Evangelista told the Inquirer in a phone interview.

“Then, it will be passed on to the adjudication (division). If there is a good reason why the prices are that way, then,  we will go after the trader who sold them the onions at high prices,” she added.

By doing so, the agriculture official said they will be able to trace the source of the problem, and determine if there is sufficient basis to file cases of price manipulation.

A day earlier, Evangelista said they were considering setting the SRP for onion at P250 per kilogram (kg), which was based on the recommendation made during  a stakeholders’ meeting held recently.

Back in October, the Department of Agriculture issued a directive capping the price of red onion at P170 per kg to arrest price increases in retail markets. However, prices of onions continued to increase above the price cap.

As of Dec 28, red onions were sold from P500 per kg at Pamilihang Lungsod ng Muntinlupa and Muñoz Market to a high of P720 per kg at New Las Piñas City Public Market.

This means more than a three-fold increase compared to the selling price of P180 to P220 per kg recorded in the previous year.