DTI to bakers: Justify price hike

MANILA, Philippines - The Department of Trade and Industry (DTI) is threatening bakers to substantiate their P1/loaf increase or else they will be forced to issue a show cause order.

In an interview with reporters, Trade Undersecretary for Consumer Welfare Zenaida C. Maglaya said that they have been meeting with bakers since Wednesday to give bakers the chance to justify their increase.

Maglaya said they are holding one on one meetings with bakers because there is no suggested retail price (SRP) for bread. The only bread covered by SRP is the Pinoy Tasty which retails for P39 per loaf.

Maglaya said the bakers need to provide DTI with their costing to see how much they bought their flour.

Bakers have raised their prices by P1 per loaf and P0.50 to P0.75 per 10 piece pack pan de sal. As per earlier submission of bakers, every P40 per bag increase in the price of flour results in a P1 adjustment in loaf bread.

Maglaya said other costs should not be included in the new loaf bread price just because the rental and other costs have been constant.

“We are talking even with Gardenia up to now. We did not agree to what they submitted,” Maglaya said. if the price increase will be implemented without the proper DTI approval then the department will be forced to issue a show cause order.