MANILA, Philippines - More manufacturers are feeling the pinch of the recent weakening of the peso in their operations, and are expressing their intent to jack up prices of their products.
Trade Undersecretary Teodoro Pascua told The STAR that several manufacturers have requested the agency to allow them to raise the suggested retail price (SRP) of their products.
Among those requesting for price adjustments are manufacturers of canned meat products and batteries. The new appeal comes alongside pending requests for a price increase from a sardines and a detergent brand, Pascua said.
For the canned meat products and sardines, Pascua said manufacturers are asking for an increase of between two to four percent.
“All of them who are requesting have not increased their prices for about two to four years. We asked them how were they able to survive that long without increasing and they said they were able to reduce other areas of expense like advertising and their packaging. They are really trying to do their best in order to maintain their market share,” Pascua said.
The trade official said the peso-dollar exchange rate, along with higher cost of production and raw material prices, were among the reasons cited by the manufacturers for their price adjustment request.
“For their request to be justified, it will depend on how big their dependence is on foreign exchange, meaning how much of their raw materials they are sourcing or importing from abroad,” Pascua said.
“We are still studying their requests, but hopefully within two weeks’ time or by the end of the month or early next month we will have a decision,” he said.
Earlier this month, the Department of Trade and Industry granted the increase in SRP of a coffee brand and four milk products.
Pascua said a bath soap brand’s request has also been approved recently, but its manufacturer has yet to implement the increase as it is still reviewing the market.
“What manufacturers are giving more attention to at present is their market share. If they increase their price, they are sensitive that they will lose their market share,” he said.
“As for consumers, if they think that a brand is not within their budget anymore, they could simply shift to another brand. Consumers can always exercise their choice and at the end of the day, these manufacturers always look at their market share once they evaluate their prices, not only their profit,” Pascua added.