President Ferdinand Marcos Jr. on Wednesday lifted the rice price ceiling beginning on 4 October, almost a month after its implementation.
The Chief Executive imposed the price cap on 5 September 2023 in an effort to curb rising rice prices and prevent hoarders and smugglers from influencing rice prices to P60 per kilo.
However, some sectors criticized the move, arguing that the price cap has detrimental effects on farmers due to lower farmgate prices, as well as on consumers as this may further limit the supply of the food staple.
In a media interview in Taguig City, Marcos said that he decided to lift the price cap after the Department of Trade and Industry (DTI) and the Department of Agriculture (DA) presented indicators in their latest sectoral meeting showing that the rice supply was sufficient and that prices were stabilizing.
"As of today, we are lifting the price caps on rice, both for regular milled rice and well-milled rice," Marcos told reporters.
Marcos also emphasized that the government would continue to support farmers and the poorest and most hungry Filipinos, even with the lifting of the price cap.
"So, we are removing the controls, but it doesn't mean we're just leaving it at that because we still need to improve the agricultural sector, and we still need to help the poorest and the most hungry so that they can somehow recover," he said.
Marcos said that the government would continue to assist farmers and support the most underprivileged families.
"To achieve that, we will continue the assistance we have been providing to farmers, firstly, and also the support we have been giving to the most underprivileged families. Those in the lowest economic demographic class, because they are really the ones suffering the most," he said.
Rice retailers struggled to profit under the price cap due to high shipping costs. The government then gave qualified small rice sellers a P15,000 subsidy.
Traders may have used the policy to cut farmer buying prices, who are already struggling.
The DA's Bureau of the Plant Industry reports that 80 percent to 90 percent of shops have followed the price cap since its implementation.