Flour prices to rise in October and December, say millers

MANILA, Philippines - After instituting a P60 per bag price increase in flour this month, the Philippine Association of Flour Millers (PAFMIL) announced that there will be two more increases in flour prices this year.

In an interview, PAFMIL Executive Director Ricardo M. Pinca said the next schedule is October and the next is either November or December. Both increases will be P50 per bag of flour, for a total of P160 per bag after the three rounds of rice increases.

Bakers have already said that for every P40 increase in the price of flour, a corresponding P1 increase in loaf bread prices follows. The P160 increase translates to a P4 increase in the price of loaf bread and a P2 increase for the price of a 10-piece pack pan de sal.

Pinca said it is time for the millers to raise their prices because this is the first time in two years that prices of flour have gone up. In 2008, the price of flour was P980 per bag. It has since gone down to current levels of P690 to P700.

Pinca explained that the price of wheat per bushel has dramatically increased from only $250 per bushel to $792 per bushel in Aug. 6. Last week prices have gone down to $706 per bushel.

Earlier, the Department of Trade and Industry (DTI) announced that the price of flour might hit an all time high as prices are expected to go up by as much as P250 per bag by December.

The price of wheat in the world market has been going up due to the decision of Russia to ban the export of wheat,

Flour is priced at P740 to P750 per bag. The highest price of flour was recorded in 2008 when it hit P980 per bag. With the threat of the millers, flour prices can easily reach P1,000 per bag.

As early as last week, some millers have already raised their prices by P60 per bag. Maglaya said they are shocked that the millers already jacked up their prices. “Nobody can prevent them from increasing their prices but we have a good relationship with the millers I hope they will not ruin it,” Maglaya warned the millers.