MANILA - Department of Finance (DOF) Secretary Benjamin Diokno welcomed the lifting of the price cap on rice, about a month after it was first implemented.

In a chat with members of the media, Diokno said the decision was timely since there is already “sufficient supply” of rice.

“Ngayon, meron na tayo because the harvest has started tapos maraming pumapasok na imports. So I think that decision to lift (the price cap) was just right,” said Diokno.

• Marcos lifts price ceiling on rice
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Diokno added that the measure seemed to have tempered hoarding and smuggling.

“Parang na-correct na rin yung mga hoarding. Tsaka we have distributed yung mga na-smuggle so there’s a lot of rice now in circulation,” he said.

But when asked if the rice price cap was effective in bringing down the cost of the staple grain, Diokno said it was difficult to determine as the price control measure only covered regular and well-milled rice.

“Di ba ang may price cap lang, iyong well-milled at tsaka (regular)? The others wala namang cap diba? You can buy kung gusto mo ng P80, okay lang. So mahirap mo rin ma-assess talaga,” said Diokno.

Some analysts have pointed the ineffectivity of the Marcos administration’s price cap after the latest data showed that inflation continued to soar in the Philippines in September, with rice inflation hitting a 14-year high of 17.9 percent.

Diokno earlier admitted that he and National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan weren’t initially consulted about the price cap.

But he later clarified that the whole economic team supported its implementation as a stop-gap measure to stabilize spiraling rice prices.

Meanwhile, Diokno said they are also reviewing the possible extension of Executive Order No. 10 which set the lower tariff for rice, corn and pork. The measure will expire in December.

“We are reviewing that because of its impact on inflation. Kasi kung idi-discontinue mo na iyon, babalik doon sa 50 percent yung tariff, right now 35 percent,” he explained.

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