Agricultural analysts relieved that price cap has been lifted

MANILA - Agricultural analysts said the lifting of price ceiling of rice is favorable to the agricultural sector.

Prof. Geny Lapina, an agricultural economist, said that this should have been the last resort in addressing the problem in rice prices.

"The price ceiling is always a legal instrument ng gobyerno, pero sana hindi agad-agad yun ang option na gagawin, sana last resort sya," Lapina said.

"It's good na finally lifted na siya, that was the clamor, lift and not prolong it," he added.

• Marcos lifts price ceiling on rice

Lapina said that the decline in the price of rice cannot be totally attributed to the price cap, as harvest season is the main reason why prices went down.

"Papasok na ang ani ng ating mga magsasaka so ibig sabihin, medyo dadami na ang supply sa ating merkado, naturally, bababa na ang presyo, so it's a more natural decline prices rather than price cap itself," he said.

"Kailangan pa rin bantayan ang presyo at importante lang, kailangan well-crafted ang response mo. 'Di kailangan magpunta sa price ceiling," he added.

Dr. Roehlano Briones, a senior research fellow at the Philippine Institute for Development Studies specializing in agriculture, said the price ceiling had both good and bad repercussions.

"Rarely does a policy like this always just have one side. The favorable effect, na discourage yung mga naghahanap ng price manipulation, yung unfavorable effect yun na nga, if you're an investor in the rice value chain, mag-hesitate ka ngayon. Parang medyo naging uncertain dahil sa willingness to intervene aggressively," he told ABS-CBN News.

Asked how low prices can get, Briones said he cannot give a definite figure yet, as many factors are at play.

But he agreed that world prices are tamed, and countries have been managing the spikes in prices well.

"What goes up eventually comes down. Ang tanong na lang, when will it go down. I do agree na you'll see some relief dun sa 10% plus increase medyo hinto na yun. Pero whether babalik yung nakita natin ng first quarter ng 2023, yun ang debatable point," Briones added.

President Ferdinand Marcos Jr. announced the lifting of the price cap on Wednesday morning.

Agriculture officials earlier said there have been favorable conditions for its lifting, as there is a high compliance rate, and prices have been going down.

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