Agriculture Secretary Francisco P. Tiu Laurel, Jr. cited low food inflation in June as an argument for extending the P50 per kilo price cap on imported 5% broken rice, according to a report by BusinessWorld. The Philippine Statistics Authority (PSA) reported that food inflation slowed to 5.4% in June from 5.8% in May, driven by a sharp decline in meat prices.
The price cap, initially implemented to stabilize rice prices amid global supply concerns, has been controversial. Proponents argue it protects consumers, while critics say it discourages imports and may lead to shortages. The latest inflation data provides the Department of Agriculture with a basis to maintain the cap, at least temporarily.
Tiu Laurel noted that the deceleration in overall food inflation supports the view that the price ceiling is not causing undue market distortions. However, stakeholders await further guidance on how long the cap will remain in place and whether additional measures will be introduced to balance consumer protection with producer incentives.