The Philippine Chamber of Food Manufacturers Inc., the country’s largest food industry association, has urged the Department of Trade of Industry to revisit the suggested retail prices (SRPs) of basic necessities amidst the ongoing economic recovery initiatives.
Meanwhile, the Independent Petroleum Companies Association said a “big time” rollback in petroleum prices was expected with the threat of the latest COVID-19 variant Omicron, first detected in South Africa.
IPCA President Noel Soriano said if suppliers and refiners would see a decline in demand, the selling price would be impacted, with industry sources saying more than P2 per liter had been chopped off from the price of imported gasoline, diesel, and kerosene.
If this pushed through, this would be the fourth rollback in recent weeks.
Industry sources said many countries were jarred by the spread of the COVID-19 variant Omicron, the reason for a decline in the demand for petrol.
In a statement, the Chamber of Food Manufacturers noticed the prices set by the DTI for basic necessities and prime commodities under the SRP bulletin have been unchanged since August 2021. Moreover, the last release of the SRP bulletin in basic commodities was published last September 2019.
The group alleged that local food manufacturers are struggling to keep up with the increasing demand especially with the upcoming Christmas season.
Manufacturers said the current SRP, some of which are set below the purchase prices of retailers such as supermarkets, had them face experienced damaging constraints in their operations.
“There is a need to regularly update the SRPs of basic commodities to help food manufacturers recover from the losses due to the pandemic,” said PCFMI 1st Vice President and Chairperson for Legislative Committee Helen Grace Baisa.
Under Republic Act 7581, also known as the Price Act, the national government is mandated to ensure the availability of basic necessities and prime commodities at reasonable prices especially during emergency situations.
Food manufacturers, however, bore the brunt of the outdated price ceilings at the expense of prices being artificially lower than the market rates, PCFMI said.
The food chamber, with more than 100 members, is composed of companies engaged in canned goods, ready-to-eat meals production, baked goods, dairy, coffee, and noodles production, among others.
“We believe that a whole-of-nation approach is necessary to provide the public with access to affordable food and that businesses are assured of government support in facing unprecedented disruptions in the food industry,” Baisa said.
The group noted that food supply chains have been heavily impacted by the COVID-19 pandemic as nations try to sustain the spread of the virus, prompting pivotal shifts in demand and exposing logistical bottlenecks.
“As more Filipinos are able to consume more this coming holiday season, we trust that DTI will give equal importance to the voice of the food industry to ensure business stability,” Baisa said.