Metro Manila (CNN Philippines) — Despite a supposed decrease in the world market price of wheat since June 2011, the country’s millers and bakers have yet to bring prices of flour, bread, and noodles down.
Department of Trade and Industry (DTI) Undersecretary Victorio Dimagiba said that the decrease has totaled to 63% since 2011.
He added that based on the world market movement, flour prices should be reduced by P45 for a 25kg bag of premium flour, P93 for a bag of class two flour, and P124 for a bag of class one flour.
In effect, consumers should also see prices of wheat goods drop:
Loaves of bread (by 56 centavos to one peso and 83 centavos per pack)
Bags of pan de sal (by 30 to 60 centavos for a 10-piece package)
Packs of noodes (by 26 centavos to 34 centavos)
According to Dimagiba, letters have been sent to a total of 16 millers and 12 bakers, requesting them to review their prices and bring them down accordingly.
But so far, only two have responded — one promised to comply, while the other defended its pricing and cited that the cost of wheat is not the only factor in determining a price change.
The DTI official, however, said that 70% of flour is wheat, and this should give business owners enough leeway to bring prices down.
But one baker offered an alternative: To increase the weight of their products.
Ongoing investigation
Dimagiba said that a final demand letter will be sent to millers and bakers next week, asking them to comply before June 19.
The DTI, meanwhile, has been coordinating with the National Bureau of Investigation and the Bureau of Customs for the ongoing investigation.
Findings will be forwarded to the Justice department so that cases can be filed against the concerned millers and bakers if necessary.
CNN Philippines’ Pia Bonalos contributed to this report.
