Flour millers face sanctions for profiteering

MANILA, Philippines - Flour millers, including Universal Robina Corp. and San Miguel Mills Inc., are facing government sanctions for reportedly keeping flour prices high despite lower prices in the global market.

Through Administrative Case No. 10-066 to 10-076, the Department of Trade and Industry’s (DTI) Bureau of Trade Regulation and Consumer Protection gave 11 flour millers 10 days to respond to allegations of profiteering.

The other respondents were Delta Milling Industries Inc., Morning Star Milling Corp., Phil. Foremost Milling Corp., General Milling Corp., Liberty Flour Mills, Pilmico Foods Corp., Phil Flour Mills, Republic Flour Milling Corp., and Wellington Flour Mills.

The firms face fines of up to P2 million.

Trade Undersecretary Zenaida Maglaya said the bureau has filed the complaint on behalf of Filipino consumers.

The DTI has set the preliminary conference on the case on June 29.

The DTI wants flour prices rolled back by P120 per bag. Maglaya said the flour millers may be prevented from selling flour above P630 to P680 per bag even before the scheduled preliminary conference.

When asked what would happen if the millers refused to sell at P630 per bag, Maglaya said they would be slapped with hoarding charges.

The bureau had sent letters to flour millers in May seeking an explanation on why flour prices had not gone down despite soft global prices. Another letter was sent in June calling for the lowering of prices to P630-P680 per bag. Presently, flour millers sell their 25kg bag at P790.