MANILA, Philippines - The Department of Agriculture (DA) is investigating the spike in the retail prices of garlic in supermarkets and major trading centers in Metro Manila despite sufficient supply.
The average retail price of both imported and local garlic in major trading centers in the metropolis has risen to as much as P290 per kilogram for imported and P180 per kilogram for local.
The prevailing retail price for local garlic is double the average farmgate price of P100 to P130 per kilogram.
Farmers from various regions said traders have not been buying their produce, causing the depletion of local garlic supply in Metro Manila.
“It appears that traders are not buying the produce of farmers. So as far as farmers are concerned, there is no shortage of supply. So we are investigating why this is happening,†said Leandro Gazmin, director of the DA Agribusiness and Marketing Assistance Service (AMAS) in a press briefing yesterday.
The DA has convened the National Garlic Action Team to determine the cause of the price spike and come up with solutions. The action team is composed of representatives of the DA High Value Crops Development Program (HVCDP), Department of Trade and Industry (DTI), academe, and the private sector.
The committee findings would become a basis for the imposition of possible sanctions against traders found responsible for price manipulation.
Gazmin said such traders found manipulating prices may be suffered to sanctions under the Price Act which punishes such offenses with imprisonment of not less than a year, but no more than 10 years, and the imposition of a fine of not less than P5,000, but not more than P1 million.
In the meantime, the DA-AMAS is assisting farmers’ cooperatives in Mindoro, Nueva Vizcaya and Batanes to distribute their produce in major trading centers in Metro Manila.
Over the weekend, DA-AMAS fielded 50 trucks to sell 435,000 kilograms of locally produced garlic in public markets in Marikina, Commonwealth, Pasig and Nepa-Q Mart.
Local garlic would be sold at a suggested retail price of P170 per kilogram.
“Prices of garlic usually rise at this time of the year but not in this magnitude,†said Gazmin.
He said the DA-AMAS would continue to assist farmers in the distribution of their produce until there is still plenty of supply.
“This will be done under our regular market distribution program,†said Gazmin.
Data from the Philippine Statistics Authority show that the national harvest of garlic increased in 2013 to 8,650 metric tons from 8,490 MT during the same period last year.
Around 30 percent of the country’s garlic requirement is produced locally while 70 percent is imported.