Higher bread prices loom in provinces

MANILA, Philippines - The price of bread outside of Metro Manila may increase as a result of the provisional duty imposed on Turkish flour imports, a flour   importer said.

Malabon Longlife Trading Corp. president Ernesto Chua Co Kiong  told  reporters on the sidelines of the Tariff Commission’s preliminary   conference for the formal investigation of wheat flour imports from   Turkey yesterday, bread prices in the provinces may rise after the provisional duties take effect.

“The most that will be affected are the products being sold in the  provinces. I am sure prices will become higher,” he said.     

This, as Turkish flour is commonly used by community bakers for products sold in provinces.    

 â€œIn the provinces, bread prices will increase by around seven to eight   percent,” Chua said.     

He noted though that the price hike is not expected to take effect immediately.      “July is when you will feel the increase. Right now, given weak   demand, bakers will not be adjusting prices,” he said.     

Earlier, the Philippine Association of Flour Millers, Inc. (PAFMIL) and Department of Trade and Industry said there should be no upward movement in the price of bread products such as Pinoy Tasty and   pan de sal as flour prices are stable.     

The 450-gram Pinoy Tasty costs P37, while Pinoy pan de sal is priced   at P22.50 for each 10-piece pack.     

Last month, the Department of Agriculture (DA) issued an order   imposing a provisional duty of 35 percent on hard flour used for making   bread, 39.26 percent on biscuit bread, and 35.21 percent on soft flour   used for pastries and cookies, on top of the seven percent regular import duty on flour.     

The provisional anti-dumping duties were imposed based on the DA’s preliminary investigation on a petition filed by the PAFMIL.     

In its petition, the PAFMIL claimed that local flour could not compete with Turkish flour being sold here at dumping prices.     

Dumping takes place when a country exports a commodity at prices lower than its domestic prices.     

The provisional anti-dumping duties which are expected to be in effect beginning this month, would be in place while the Tariff Commission   conducts a formal investigation to determine if a permanent anti-dumping duty should be imposed.     

Tariff Commission chairman Edgardo Abon said they expect to have a decision on the matter by September.     

Meanwhile, Turkey’s commercial counsellor to the Philippines Cezmi Besogul told reporters the imposition of anti-dumping duty on Turkish   flour imports “will create negative repercussions” on bilateral trade.