DTI moves to avert bread price increases

Trade officials will meet with bakers and millers to avert a looming price hike in bread products and soften the impact of rising flour and wheat prices in world markets. The meeting aims to find ways to stay within the suggested retail price of P1-P1.50 per 25 grams of pandesal, Trade Assistant Secretary Theresa "Angel" Pelayo-Ty said on Tuesday. Earlier, bakers said they might stop offering the much-hyped budget pandesal launched barely three months ago, adding that might have to raise prices of bread products to keep up with rising input costs. The standardized 20-gram pandesal priced at P1.50 — a program launched in October last year to boost demand — has become unviable in light of more expensive sugar and the impending increase in flour prices, industry groups said. "There should be a P1-P1.50 pandesal in the market, although we're meeting with bakers and millers in the face of rising flour and sugar prices," Pelayo told radio dzBB in Filipino. She also said the Trade department was keeping watch over prices of noodles and other food items that use flour as a major ingredient. Pelayo-Ty reminded manufacturers not to raise prices immediately after flour prices go up. "Every centavo hike must be justified," she said, adding that there should be a six-month grace period since the industry might still have an inventory. Meanwhile, Pelayo-Ty said the government has issued notices of violation to 41 cement retailers and dealers. She said at least two retailers have been charged administratively, although both have blamed the manufacturer for charging high prices. Pelayo-Ty said cement prices were still above the suggested retail price of P210 to P215 per bag. She reminded cement manufacturers of their promise that prices would normalize by January, after increased demand following the devastation left by typhoons in the last quarter. — GMANews.TV