PRICE WATCH

No bread and flour price increases

posted Jan 25, 2010, 10:43 PM by Leonard Flores

General Santos City (January 26, 2010) - DTI revealed that wheat prices in the international market remains steady at a high of US$292 to a low of US$268 in 2010 as compared to 2008 period where it peaked at US$818.
 
DTI has sent a letter to individual flour companies to verify reports if there is indeed intent to increase price by P20, and if there is, justify before implementing.
 
Monitoring reports show that prevailing prices of Wellington and Globe hard flour both went up by P10 compared a month ago.  Wellington 25kg bag sells at P810 while Globe sells at P790.
 
According to Mr. Pinca of PAFMIL, wheat with 14% protein content is $30 more expensive per ton than the 13% protein content and would translate to about P28 more per bag when sold locally.  Bakers prefer the DNS 14 flour.
 
Rise in sugar prices should not be a reason for increase in pan de sal and bread loaf prices because sugar is only 8.5% of cost component.
 
Approximately 80% of bread ingredient is flour.
 
Bakers associations last week assured the DTI that there will be no price increase.
 
To ensure that prices of flour will not go up further, the government right now has recommended for the extension of the zero-duties on wheat.

Government working to stabilize supply and price of sugar

posted Jan 25, 2010, 10:34 PM by Leonard Flores

Koronadal City (January 25, 2010) - There is adequate supply of sugar in the market.
 
Prices, though, have continued to spiral due to heightened demand for sugar this year, judging the rate of withdrawaks from the mills, plus the fact that the world sugar price is at 28-year high, according the Sugar Regulation Administration.
 
Below is the data on the price trend of sugar commodity in Region 12:
 
Price Today (January 25, 2010): P51/kg (white); 41/kg (brown)
Prevailing Price (January 2010): P47/kg (white); 36/kg (brown)
Last Month (December 2009): P43/kg (white); 33/kg (brown)
Three Months Ago (October 2009): P40/kg (white); 32/kg (brown) 
Last Year (January 2009): P32/kg (white); 24/kg (brown)
 
To address the increase in consuemr demand, the government through the National Food Authority plans to import 150,000 metric tons of sugar into the country.  The importation aims to temper the price of sugar and bring prices back to reasonable levels.
 
Target date of the arrival of importation is on May 01 until August, after the sugar milling season.
 
All offices in DTI Region 12 are conducting regular monitoring of price and supply of basic neccessities and prime commodities including sugar.
 
In the event of a clear violation of Price Act, Republic Act No. 7581, DTI enforcement officers are expected to recommend to the concerned Provincial/City Directors for subsequent filing of formal charges.
 
The Price Act defines the illegal acts of price manipulation.  These acts refers to hoarding, profiteering, and cartel.
 
The above illegal acts can be committed by persons habitually engaged in production, manufacture, importation, storage, transport, distribution, sale or other methods of disposition of basic necessity and prime commodity.
 

Price and supply remains stable

posted Jan 25, 2010, 9:57 PM by Leonard Flores

Manila (January 22, 2010) - "Prices and supply of basic goods remain stable," according to DTI Undersecretary Zenaida Maglaya.
 
"The Department is in constant dialogue with industry groups to ensure that supply is adequate and that prices are kept at reasonable levels.
 
Cement is under strict monitoring after supply of commodity became scarce and prices increased during the holiday season.
 
Contingency measures are ongoing to normalize the market while other measures are on hold that will complement enforcement activities."
 
To keep consumers updated, the Department has published suggested retail price (SRP) of cement in selected newspapers.
 
Records from the DTI would show that as a result of recent regulatory activities eleven (11) suppliers of cement based in NCR were issued formal charges.
 
So far DTI Head Office maintains that supply of cement is no longer a problem. 
 
"But DTI continues to monitor the market to ensure that price of cement remain at SRP levels."
 
On other commodities, the DTI noted some decreases in the prices of processed milk and coffee refill.
 
"In wetmarkets,prevailing price of Nido Full Cream powdered milk went down by P1.00 compared last month.  There are also decreases in the price of some Alaska and Alpine commodities.
 
Great Taste granules likewise went down by P0.50 compared a month ago."
 
The DTI enjoins the buying public to report cement overpricing and hoarding in the market.

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