Manufacturers want to raise prices of basic commodities

MANILA, Philippines -  Manufacturers of basic commodities have indicated their intent to raise prices due to the continued weakening of the peso against the US dollar.

Trade Undersecretary Teo-doro Pascua said several manufacturers of goods such as sardines, soap, and pasta have indicated their plan to jack up prices this month.

Pascua said this is on top of a recent increase in the suggested retail price (SRP) of a coffee brand and four milk products which have already been approved by the agency.

For canned sardines, Pascua said four products are seeking a price hike of about 30 centavos.

“We will verify their reasons. We can increase but this will depend on whether their reasons are valid,” Pascua said.

According to Pascua, the peso-dollar exchange rate along with higher cost of production and raw material prices were among the reasons cited by the manufacturers for their price adjustment request.

Pascua, however, said the devaluation of the peso alone could not be used to justify a price increase.

“If you’re a manufacturer and the material that you are sourcing or importing abroad is only one, then the impact of foreign exchange should not be that big to you,” he said.

As of Thursday, the peso closed to a fresh 10-year low against the dollar at 50.31. This was the lowest level since it closed at 50.32 to $1 on Sept. 26, 2006.

Pascua said the Department of Trade and Industry approved a 45-centavo increase in the price of a coffee brand for a 50-gram pack effective March 1. Four canned milk products, meanwhile, were given the go signal to add P1.15 to P1.90 to their SRP.