DTI halts SRP increases in goods

The government has deferred the impending hike on suggested retail prices (SRP) of some basic necessities as the country faces another strict shift of quarantine protocols in the first half of August amid the surge in coronavirus cases.

Trade Secretary Ramon Lopez said there is no way the government will allow any price hikes that will further burden the country, which stands to lose billions of pesos during the two-week lockdown on August 6 till 20.

“We decided to postpone the issuance of the SRP. Definitely, no price movements during the ECQ period,” Lopez said over the weekend.

The Consumer Protection Group (CPG) of the Department of Trade and Industry has also advised manufacturers and consumers that prices of basic necessities will continue to be at current levels until the final day of the enhanced community quarantine.

The DTI was poised to release a new set of SRPs following a two-year moratorium on price hikes due to the pandemic. Manufacturers had petitioned for a 3 to 5 percent hike in SRP starting August.

Despite the increasing cost of raw materials, manufacturers remained compliant to the DTI’s request to keep price hikes at bay while the country is in crisis.

But the rising prices of raw materials, domestically and in the world market, was eating out their already eroded profitability, they noted.

In a recent meeting, manufacturers complained that the price of tin cans went up by 60 percent, while PET bottle packaging also increased by 37 percent.

Prices of herring, used to make sardines, rose by 14 percent, meat by 10 percent, and mechanically-deboned meat by 87 percent.

The DTI has already approved price increases for consumer goods such as milk and sardines. It is still assessing pricing requests for canned meat, instant noodle, coffee, creamer, and condiments.

The DTI has previously announced that basic necessities will be sold based on its September 30, 2019 SRP list, following the lifting of the 2-month moratorium on SRP increases.

The basic necessities were placed under automatic price control at their prevailing prices due to the outbreak of African Swine Fever.

The price freeze lasted 60 days from May 10 till July 9 this year.

The products under basic necessities include canned sardines in tomato sauce, luncheon meat, meatloaf, beef loaf, corned beef, processed milk, coffee, bread, locally manufactured instant noodles, salt, detergent soap/laundry soap, toilet soap, bottled water, candle, and condiments such as vinegar, soy sauce, and fish sauce.

The DTI-Fair Trade Enforcement Bureau and the DTI regional and provincial offices will continue intensified monitoring within their respective jurisdictions to check -out compliance to Republic Act No. 7581 or the Price Act.

The DTI reiterated its warning on non-compliance, as erring establishments shall be charged with illegal price manipulation, hoarding, profiteering, and cartel.

Based on the Price Act, those engaging in illegal price manipulation will be subject to imprisonment for a period of not less than 5 years but no more than 15 years and will be required to pay fines of not less than P5,000 to P2 million.