An official from the Bank of the Philippine Islands told Philstar Biz that high tariffs and price caps are squeezing local agribusiness profits, reducing their ability to invest further in the sector and expand operations.
The official said these government policies directly hamper the growth of agribusinesses, which face higher input costs due to tariffs and limited revenue potential from price ceilings. This leaves firms with less capital for upgrading equipment, adopting new technologies, or expanding production capacity.
The statement underscores concerns that while price caps aim to protect consumers, they may discourage long-term investment in agriculture. The BPI official urged policymakers to consider the impact on business viability when designing trade and pricing regulations.