DTI, traders agree on SRP

MANILA, Philippines - The Department of Trade Industry (DTI), manufacturers, retailers, and several consumer groups agreed yesterday to come up with a resolution in the proposed deregulation of the suggested retail price (SRP) scheme.

Trade Secretary Ramon Lopez is set to issue a resolution order removing the need for the DTI’s approval in the SRP setting of basic necessities and prime commodities, along with necessary cost adjustments. 

“There is no use for that approval system. That is why it is even considered a bureaucratic red tape,” Lopez said. 

“The resolution simply will ask manufacturers, the brands, to give us their SRP. We will still monitor the compliance of retailers if they will follow that,” he said.

 With the DTI keeping its hands off in the approval and adjustments in SRP setting, Lopez said market forces would lead to cheaper and better quality products to the benefit of consumers. 

The DTI is also set to partner with the Philippine Competition Commission (PCC) to ensure competitive practices across all industries. 

“We will sign a memorandum of agreement with the PCC this month to look into the industries so that jointly we can examine industries which need to be watched closely because as mentioned, we will continue to monitor prices,” Lopez said. 

“We will review the profile of each industry and examine if there’s enough players and competition,” he said. 

DTI’s proposal to give manufacturers freedom to set SRP of their products without the agency’s approval has initially alarmed some consumers, believing it would lead to collusion and higher prices.