Flour millers vow to keep prices stable

MANILA, Philippines - There will be no increase in the price of flour in March after the government signed EO 863 which extended the duty free importation of milling wheat for another six months.

Philippine Association of Flour Millers (PAFMIL) executive director Ric M. Pinca said that because of the signing of the EO, the price of flour will not go up for the entire month of March.

Previously, the duty for milling wheat was three percent. Pinca said that they are pleased when Trade Undersecretary Zenaida C. Maglaya informed them the EO has been signed.

Depending on the mill, brand and quality, hard flour is being sold at P750-770 per bag while soft flour is priced at P650-670 per bag. These are ex-mill prices or the price of goods picked up at the mills. Retail prices especially in the provinces are higher due to transport costs and margins of local traders. 

Hard flour is used for breads such as pandesal, loaf bread and monay, among others while soft flour is for pastries, cakes and cookies.

Flour millers earlier announced that they will implement a P20 increase in flour prices this month but changed their mind after the government decided to extend the duty free importation.

This year, the demand for flour is expected to go up to 2.2 million metric from the two million metric tons a year ago.

Pinca said that it is possible to reach this next year because demand for versatile and mobile food will go up because of elections. “2010 is an election year so we expect greater expenditure for versatile and mobile food.”

The Philippines is the fifth biggest importer of wheat from the United States. The country imports 1.7 million metric tons of flour from the US. The biggest importer of US wheat is Japan with 3.3 million metric tons, Nigeria with 2.7 million metric tons and Mexico with 2.6 million metric tons.