Flour millers seek extension of duty-free importation of wheat

MANILA, Philippines – Flour millers are asking the Department of Trade and Industry (DTI) to extend the duty free importation of milling wheat to keep the price of bread and other flour-based products stable.

In a letter dated May 20, Philippine Association of Flour Millers (PAFMIL) Ric M. Pinca asked DTI Secretary Peter B. Favila for the extension of Executive Order 765 which removed the tariff on imported milling wheat.

“The wheat flour milling industry responsibly passed on to the consumers in the form of lower flour prices the three percent savings the millers generated from the tariff exemption,” Pinca said.

From Dec. 21, 2008 when EO 765 took effect, wheat flour prices have dropped from a range of P915 - P930 per 25 kg bag to as low as P760 - P780 per bag.

Likewise, Pinca noted that bread prices dropped as a consequence of lower flour prices. Pandesal which previously retailed at P2 - P2.50 per piece of 25 grams went down to P1.50 per piece.

Early this month, bakers agreed to sell budget pandesal starting today for P0.50 less than the original price. In an interview, Chito Chavez of the Philippine Federation of Bakers Association, Inc. (PFBAI) said that starting today, a 20 to 25 gram pandesal may be bought for P1.50.

Normally, a pandesal weighs 30 grams and retails for P2 a piece. The budget pandesal will weigh not less than 20 grams but will be sold for P1.50 only. Chavez said that both variants will be available in bakeries.

According to Chavez, this will help move bread products because he said demand has been dropping given the prices and the presence of alternative products like rice and noodles.

Right now, he said the budget pandesal is not available in all bakeries. “We are appealing to all bakers to please make budget pandesals to help people afford pandesals especially during times of crisis,” Chavez said.

“The P1.50 at 25 grams of pandesal is a new variant of pandesal especially formulated in response to our meeting with DTI Undersecretary Zenaida Maglaya,” Chavez said.