Consumers told to brace for higher prices of bread, too

(Updated 10:50 a.m.) MANILA, Philippines - Amid soaring prices of rice and fuel, consumers will have to brace for yet another round of price hikes next week - this time in the prices of bread and other flour-based food products. Philippine Baking Industry Group head Simplicio Umali Jr on Thursday said the group has exhausted all means to prevent a price hike, but the latest increase in flour prices is forcing members of the group pass on the additional cost to consumers. "Ginawa na namin ang lahat na makakayanin namin. Nagtipid kami sa operating costs, para mas mababa ang presyo. Pero nagtaas ang presyo ng arina ngayon (We have been doing everything we can to bear the higher costs. We've been cutting on operating costs to keep prices low. But prices of flour went up again)," Umali said in an interview on dzBB radio. Umali said that starting April 15, consumers can expect an increase in prices of pan de sal by P1 to P1.50 per piece, which currently sells at P2.50 per piece. Those who will sell pan de sal at the same price are expected to "shrink" their products, he added. While prices of loaf bread will increase by an average of P3-P5 per loaf and will sell between P47.50 and P55 starting Tuesday. Even prices of noodles and pasta will go up since their main ingredient is flour, Umali said. "Apektado pati pasta pancit dahil ang raw material niyan arina. Tataas na rin ang noodles, gawa din ng arina (Prices of pasta and noodles will go up because they use flour as raw material)," Umali said. Umali said prices of flour increased to P990 a bag April - up by up seven percent from the previous month. This is an 18-percent increase from January's prices of P840 per bag, Umali noted. Umali cited prolonged droughts in wheat-producing countries such as Australia for the decline in flour supply, which is in turn driving prices up. He, however, said flour prices are expected to go down next year, when Australia and Canada are seen to boost wheat supply. For his part, Chito Chavez, vice president of the Philippine Federation of Bakers, urged President Gloria Macapagal Arroyo to come up with measures to help ensure the steady supply of flour after May to avoid further price increases. In an interview on dzRH radio, Chavez suggested the importation of flour from China which offers the product at relatively lower prices. Chavez also echoed Umali's statement for the need to hike pan de sal price by P1 saying the industry has to survive to be able to support thousands of families who are directly and indirectly employed by the industry. In the interview, Umali said even bakers are suffering from the effects of the price hikes, saying they expect demand to decline by as much as 10 percent with the looming hike. "Nag-shift sa mas mataas na kalidad na tinapay pero kaunti binibili nila di tulad ng dati mas maraming binibili (Consumers now prefer higher-quality products but they are buying less, not like before)," Umali said. - GMANews.TV