Food processors back deregulation of SRP

MANILA, Philippines - A group of food manufacturers has expressed support for the Department of Trade and Industry (DTI)’s plan to remove its approval process in setting the suggested retail prices (SRP) of basic necessities and prime commodities to reduce bureaucratic procedures.

In a statement, Philippine Association of Meat Processors Inc. (PAMPI) president Felix Tiukinhoy Jr. said the group commends the move of Trade Secretary Ramon Lopez to deregulate the SRP scheme.

“The ongoing practice now is that SRPs of basic necessities and prime commodities are currently set by manufacturers, but are subject to evaluation and approval by the DTI,” Tiukinhoy said.

PAMPI backed DTI’s stance that setting the SRP should be a business decision among manufacturers.

“We should give the consumer the freedom to choose what is best for him. People can patronize products with good value. On the other hand, they can boycott abusive manufacturers,” Tiukinhoy said.

The PAMPI official said as far as price adjustments go, the group and its 35-member companies advocate good manufacturing practices to ensure efficient production and sound supply chain to keep products cost-competitive.

In support of the Duterte administration’s thrust to protect the well-being of every Filipino consumer, he said PAMPI ensures it keeps prices at a minimum level without denying legitimate business a fair return on investment.

“Our meat products, which are considered prime commodities, are price-sensitive and highly competitive.  Minor price adjustment among market players would mean loss of market share and competitiveness. Thus, we do not see the importance of a government-regulated SRP,” Tiukinhoy said.

“We fully agree with Secretary Lopez that manufacturers of basic necessities and prime commodities are hesitant to increase prices for fear of losing market share. For us, consumer loyalty is of prime importance to make our business sustainable,” he added.

Lopez earlier said he plans to give companies the freedom to decide on the pricing and necessary cost adjustments of basic necessities and prime commodities.

The trade chief said the proposal should not be feared by consumers as prices of basic products would continue to be monitored by the DTI.

Lopez said SRP on basic necessities and prime commodities would not be removed as it would only be DTI’s mandate to approve SRP and its necessary adjustments that would be scrapped.

Consumer group Laban Konsyumer Inc., led by former trade undersecretary Victorio Dimagiba, has opposed DTI’s proposal, saying the agency should learn from lessons of the past.

“If it ain’t broke, why fix it? With inflation more than three percent, the timing is not good. The garlic and onion cartel and profiteering where retail prices jumped so high are recent lessons learned,” Dimagiba said.

“In the past, DTI sued flour millers, big bakers, and cement companies for profiteering because the SRP of their products are no longer reasonable and should be reduced,” he added.