The Department of Trade and Industry (DTI) is considering delisting several products from the Suggested Retail Price (SRP) bulletin following several requests from Basic Necessities and Prime Commodities (BNPC) manufacturers to remove their products from the SRP list.
The agency acted on the request based on reports and recommendations from the Consumer Policy and Advocacy Board, the Fair Trade Enforcement Bureau (FTEB), and regional offices.
The DTI refused to disclose the number of stock-keeping units (SKUs) that face delisting. However, the agency has prepared a draft department administrative order (DAO) to provide guidelines for listing and delisting products in the SRP list.
The agency expects all stakeholders to join the virtual public consultation on SRP listing and delisting on June 14, 2022, with DTI and other national agencies on June 14, 2022, and on June 15, 2022, with the business sector and general public.
According to the draft DAO, considerations for delisting involve the recent consumer demand trend; the product’s saleability; affordability measured by the least percentage of purchases; non-availability of SKUs due to stocks depletion or phase-out of the product; frequency of replenishment and stock inventory of finished goods; continued availability of the BNPC, whichever is applicable, in the retail shelves.
The DTI recognizes the need to allow market forces to determine the movement in prices, parallel to movements in supply and demand.
“Players in the industry can compete among each other and gain reasonable profits through increased efficiency and greater production, which can lead to supply and lower prices while ensuring physical and economic access to BNPCs, as well as to protect consumers from trade malpractices,” the draft DAO read.
In addition, the DTI also recognizes the need to institutionalize standards and streamline procedures for listing and delisting of stock-keeping units (SKUs) to ensure systematic evaluation, processing, and action on the recommendation either from the DTI, manufacturer, or relevant stakeholder.
Under Republic Act 7581, or the Price Act, the DTI may issue and update the SRP from time to time, for the information and guidance of producers, manufacturers, traders, dealers, sellers, retailers, and consumers.
The DTI is mandated to regularly visit, evaluate, and publish the SRP to ensure the reasonableness of prices.