MANILA, Philippines - The Department of Trade and Industry (DTI) is giving flour millers 10 days to reduce flour prices by P40 per bag or else the department will impose a suggested retail price (SRP).
After the SRP is issued, the department can file profiteering charges against sellers who will sell their price above the government imposed SRP.
In a press conference, Trade Undersecretary for Consumer Welfare Zenaida C. Maglaya said that the current price of flour is still at P900 to P940 per bag in spite of the lower global wheat prices. Maglaya said they are giving millers until Oct. 28 or next Friday to lower their price or else face the consequences.
“Our target is to lower whatever their price is by P40 per bag because the rule of thumb is P1 decline in loaf bread prices per P40 per bag decrease in flour prices,” Maglaya said. The price of a 10 piece pack pande sal goes down by P0.50 for every P40 per bag decrease in flour prices.
Maglaya noted that the price of flour must be below P880 per bag because there are some sellers who were able to sell flour at P880 per bag. Based on the current market prices, flour should be at P860 per bag.
Maglaya said that flour millers already said that the data used by DTI is different from their costing. As such, the DTI ordered millers to submit to the DTI their costing in order to justify their current prices.
Meanwhile, Trade Secretary Gregory Domingo said the price control in areas affected by the three typhoons will remain until the state of calamity is lifted. Once the price control is implemented, businesses in the affected area cannot increase prices of its goods until the price control is lifted. Violators can be fined P1million and be imprisoned for not less than a year but not more than ten years.
Domingo reported that the prices of goods in most of the affected areas were stable and there is enough supply. Likewise, Domingo said they will bring the Diskwento Caravan to the affected areas.
The caravan is a priority project of DTI which offers very affordable basic and prime commodities to the people.