President Ferdinand Marcos Jr on Thursday signed into law a measure that classifies smuggling, hoarding, and cartel operations involving agricultural products as economic sabotage. 

The Philippine leader signed Republic Act No. 12022 or the Anti-Agricultural Economic Sabotage Act in a ceremony in Malacanang. 

The new law aims to protect local agriculture workers and the economy by imposing stiffer penalties against smugglers and hoarders of agricultural food products. 

Under the law, the smuggling and hoarding of agricultural food products may be considered as economic sabotage when the value of goods exceed P10 million. 

Creating cartels and financing smugglers and hoarders will also be considered economic sabotage. 

Agricultural products covered by the new law are rice, corn, beef and other ruminants, pork, poultry, garlic, onions, carrots, garlic, other vegetables, fruit, fish, salt and other aquatic products in their raw state. 

Violators face life imprisonment on top of hefty fines worth five times the value of the smuggled or hoarded agricultural or fishery products. 

Marcos certifies as urgent bill against agri economic sabotage

In his speech, Marcos Jr. warned smugglers and hoaders that the government is committed to take swift and decisive action against anyone who sabotages the country’s agricultural sector.

“To those who seek to sow chaos in the fertile fields and waters that sustain us: The hand of justice will swiftly and decisively find you,” Marcos Jr. said.

“Economic sabotage in agriculture is not simply a tale of dubious deals and inflated profits; it manifests as well as hunger, desperation, as betrayal.”

“And let me be clear: this law does not just target the masterminds; it holds all accomplices accountable—financiers, brokers, employees, even transporters,” he added.

The law also mandates the establishment of the Anti-Agricultural Economic Sabotage Council to be chaired by the President alongside the Secretaries of Agriculture, Finance, Transportation, Trade and Industry, and Interior and Local Government, and Justice, among others.

The government will also create the Anti-Agricultural Economic Sabotage Enforcement Group, “dedicated to dismantling smuggling operations and apprehending offenders,” Marcos said.

“We will confront and dismantle the powerful forces that have long exploited our system for their own gain, ensuring that justice prevails, and the dignity of our agricultural sector is upheld. No more backdoors, no more shortcuts, and certainly no more turning a blind eye in Bagong Pilipinas,” Marcos vowed.

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"By eliminating smuggling, hoarding, profiteering, and other cartel activities, we are not only shielding our local producers but also providing consumers with affordable agricultural and fishery products.”

The President noted that the local agriculture sector lost over three billion pesos to agriculture smuggling in 2023 alone. Meanwhile, Philippine authorities have seized over P230 worth of smuggled agricultural products in the first 9 months of the current year.

 Meanwhile, Agriculture Secretary Francisco Tiu-Laurel welcomed the enactment of the landmark measure, which he says has more teeth than the earlier Anti-Agricultural Smuggling Act of 2016.

 “Yung law noong 2016, nakatulong din naman yon ano, pero kulang ng ngipin. Kulang ng pangil. This is a tougher law, mapapaisip ang mga nag-iisip gumawa ang kalokohan bago nila gawin, dahil pwede sila makulong with no bail, alam mo naman justice system minsan mabagal baka mabulok sila sa kulungan,” Tiu-Laurel said in an interview. 

“Kasi pati lahat ng warehouses ngayon for grains and cold storages kailangan nakarehistro.  Kapag nakarehistro yan mas madali nang imonitor ng gov agencies at mapuntahan, we will have visitation rights. So any warehouse now na may food na may malaking halaga at hindi registered ay malamang iligal yan.” 

The agriculture chief also issued a stern warning against smuggling and hoarders following the enactment of the Anti-Agricultural Economic Sabotage Act. 

“Ang mensahe ng gobyerno baguhin nyo na ang linya ng negosyo nyo kung intention yong mag smuggle ng agri good, wag na kayo rito, mapapahamak lang kayo,” he said. 

Congress OKs Anti-Agricultural Economic Sabotage bill, now up for Marcos approval  

SINAG President Rosendo So meanwhile said that the enactment of the Anti-Agricultural Economic Sabotage Act is a welcome development for local farmers who have for years been affected by the entry of smuggled agricultural products.

 “Malaki kasi ito hindi nagbabayad ng taripa so kapag pumasok ito ay bawas ang koleksyon natin. And hindi naman binebenta ng mura and hindi natin alam kung ito ay maysakit na pumasok sa ating bansa. So ito is malaking bagay ang batas na ito para at least masugpo ang smuggled agricultural products,” he continued.

 “Sa mga magsasaka at least ay fair competition and payment of proper taxes.”