DTI probes steep rise in premium flour price

MANILA, Philippines - The Department of Trade and Industry (DTI) is investigating the P10 increase in the price of one premium flour brand last week.

In an interview with reporters, Trade Undersecretary Zenaida C. Maglaya said that there should be no increase in the price of flour because there were no reported problems with flour in the in the world market.

 “We have to check why there was an increase,” Maglaya said. According to her, her team is verifying if there is any reason for flour prices to go up. The prices went up by P10 per 25 kilo bag.

“We want to check if they sent us a notice that they will be adjusting their price,” Maglaya said. “We need to check all brands now because it might be that one company raised their price and the others might follow,” Maglaya said

Maglaya explained that traders cannot immediately implement any price adjustments without informing the DTI first. After the notice, Maglaya said they would have to understand and agree that there is just cause to increase the price.

She said that bakers usually prefer the premium brands because it produces better yield. However, Maglaya said that there should be no adjustment in the price of bread as a result of the P10 increase because Maglaya said it has no effect yet.  She estimated that bread prices will go up only if the price of flour increases by an additional P30.

Meanwhile, the Philippine Association of Flour Millers (PAFMIL) said they have not instituted any price adjustments because the price in the world market has been steady. “I am certain that flour millers did not adjust their prices maybe it’s the traders,” PAFMIL Executive Director Ric M. Pinca said.