Department of Trade and Industry sees drop in price cap for some products

MANILA, Philippines - Price caps for milk, bread and noodles are expected to decline amid lower costs of raw materials, the Department of Trade and Industry (DTI) said.

Trade Undersecretary Victorio Mario Dimagiba said the costs of raw materials for milk, bread and noodles have dipped.

He noted that the price of imported skimmed milk, a raw material for powdered, evaporated and condensed milk accounting for at least 50 percent of the price components of the product, has already dropped 67 percent.

“Consequently, we expect that the suggested retail prices (SRPs) of processed milk and the other identified basic goods, to decrease appropriately,” Dimagiba said.

The DTI has started meeting with manufacturers of milk, bread and noodles to discuss the SRPs, given the latest developments.

Based on the monitoring of the DTI, prices of other basic necessities and prime commodities were mostly unchanged or remained lower than their SRPs by 0.05 percent to 23.72 percent for the period October 2014 to January 2015.

“The results of our monitoring activities show that the monitored prevailing prices of 40 brands of basic and prime goods are at SRP levels and these remained unchanged from October 2014 to January 2015,” Dimagiba said.

The reports also showed that additional products reflected the drop in their monitored prevailing prices from December 2014 to January 2015 by 1.82 percent to 2.13 percent.

These products are: 155-gram (g) Lucky 7 canned sardines (down 1.82 percent or P0.25); 150g Bear Brand Powdered Milk (decreased 1.96 percent or P1); 50g Great Taste Granules (lower 2.13 percent or P0.80); and 25g Nescafe Classic (declined 1.24 percent or P0.25).

As for basic necessities and prime commodities that have no published SRPs, 42 brands of basic and prime goods remain unchanged from October 2014 to January 2015.

As world oil prices continue to fall, Dimagiba is calling on manufacturers to discuss with the DTI the impact of such on the production of goods.

“We enjoin the manufacturers to maintain an open communication with the department so we can discuss each other’s concerns and fully understand the impacts of the decreasing world oil prices on their operations and on consumers’ concerns,” he said.

He said the DTI would continue to conduct price monitoring and market activities to ensure there is enough supply, and that goods being sold comply with the SRPs as mandated by Republic Act 7581 or the Price Act.

Firms that engage in illegal price manipulation such as profiteering, could face penalties of imprisonment of five up to 15 years and administrative fine of P5,000 up to P1 million, under the Price Act.

For a copy of the report on prices and SRPs, consumers can visit the DTI website: www.dti.gov.ph.

To report retailers selling goods above the SRPs, contact DTI Direct 751.3330 or 0917.8343330.