DTI tags stores in drive to rein in cement prices

The Trade department has begun bolstering efforts to rein in cement prices, naming establishments on Tuesday that could be sanctioned for selling above suggested levels. The firms have been ordered to surrender delivery receipts from their dealers, which a Trade official said would help identify which wholesalers were jacking up prices. The department announced last week that it would crack down on retailers, dealers, and manufacturers that unduly hike cement prices or hoard supply as consumers seek to repair storm-damaged houses. Reference prices were issued over the weekend and the department said it would monitor market compliance for a week before deciding whether to resort to price controls. Tuesday's list featured 65 hardware stores strewn across Metro Manila and the nearby provinces of Rizal, Cavite, Laguna, Bulacan and Pampanga. They were cited for allegedly carrying no stocks, refusing to sell, or pricing cement beyond the prescribed price of P205-210 per 40-kilo bag. "We check receipts they issue [to buyers] and their dealers' receipts for deliveries," Trade Assistant Secretary Angel L. Pelayo told BusinessWorld in a telephone interview. So far, 27 of the 29 retailers that came forward have been cleared after their mark-ups were deemed "reasonable," Pelayo said. "It seems to be the dealers [jacking up prices] since cement manufacturers said supply has been back to normal [from when production was slowed in December]. We will be calling in the dealers next," Pelayo said. "With this, there is no he-said, she-said. We can pinpoint who the profiteer is in the whole chain, or if not, find out if there are other causes like transportation costs," she said. The Cement Manufacturers Association of the Philippines has said its members have generally not increased ex-plant prices. In a statement issued yesterday, the group said they supported the Trade department's move to refrain from imposing price controls. The group noted, however, that it would be meeting with the department correct some of the prescribed ex-plant prices. — Jessica Anne D. Hermosa, BusinessWorld