MANILA, Philippines - Makassar, Indonesia – Amidst high flour prices in the Philippines, baker groups have trooped here to import flour.
The group, led by Malabon Long Life president Ernesto N. Chua is here to tour Eastern Pearl Flour Mills and negotiate a possible importation of Indonesian flour. Bakers will visit the mill today and inspect the quality of Indonesian flour.
This developed as flour millers warned of a looming price increase as a result of the imposition of tariff on wheat. The zero duty for wheat has expired and the government has not renewed it.
Philippine Baking group president Simplicio Umali Jr. said millers have already informed them of higher prices. Umali said millers seemed to be doing the opposite of what the Department of Trade and Industry (DTI) ordered. The DTI has asked millers months ago to lower their price by at least P40 per bag because price of wheat in the world market has already dropped.
The latest available price monitoring report of the DTI showed no movement in flour prices at P940 to P900 per bag.
For their part, the Philippine Association of Flour Millers (PAFMIL) said that most flour brands have been at the price of P900 and below per bag of 25 kgs. except for two to three premium brands that are on sale at premium prices. These premium brands have a very small share of the market.
“There are some 50 brands of flour in the market produced by 11 flour milling companies. For the DTI to make a pricing decision based on the retail price of only two to three brands may not be proper,” PAFMIL said in a statement.