Manila, Philippines - The government sees the prices of basic commodities stabilizing but has decided to expand the coverage of the Diskwento Caravan, a project that pools manufacturers to sell products at lower prices.
“The good news is that commodity prices abroad had stabilized – from oil to flour to other products. The situation now is more stable. That is why our expectation now is that commodity prices will no longer go up,” Trade Secretary Gregory Domingo said in a briefing in Malacañang yesterday.
He said that while prices of oil and other products abroad had stabilized, it would be difficult to predict if prices would continue to go down. The inflation rate is also expected to hit five percent this year.
“So far for the first three months, (inflation) is at 4.6 or 4.5 percent, so far, so good,” Domingo said.
He said that from nine caravans last year, the Department of Trade and Industry (DTI) would expand the program to around 60 to 100 caravans.
These would be launched in selected areas nationwide in the next five weeks, up to mid-June.
A limit of P1,500 worth of purchase is imposed on consumers to make sure that the discounted products are not resold.
“There are many people (coming). They mob the (caravans). We thought this would be a big help to the people and thus the President asked that the coverage be expanded so more people would benefit,” Domingo said.
He said the project in being undertaken in coordination with the local government units and that the budget would come from the savings of DTI.
The Diskwento Caravan offers basic products such as generic medicine, bread, sardines, cooking oil, processed meat, fruits, vegetables, detergent bars and school supplies that their manufacturers sell at discounted prices.
Product prices are marked down by as much as 75 percent, especially medicine.
Small and medium enterprises in various localities also get the chance to offer their products during the caravans.