No price control on agriculture products

MANILA, Philippines - Despite complaints from consumers regarding high vegetable prices, the government will still not impose price controls on agriculture products.

“The Department of Agriculture (DA) said that there is no need (to include vegetables in price control) because there is enough supply,” Trade Secretary Peter Favila said.

“There are complaints because of the high price of vegetables but DA said the supply will stabilize in the next couple of days,” Favila explained.

He said they cannot impose any price control on agriculture products without the endorsement of the DA secretary. Favila said they will see if the price of vegetables will go down in the next few days and then base their recommendations from there.

The trade secretary also said that there is a possibility of extending price controls in Luzon – including Metro Manila – because many areas are still submerged. He said there continues to be a need for price controls in Luzon even if it was already lifted in Visayas and Mindanao.

“We look at the situation on a daily basis,” Favila said, adding that the price control is working because they are now receiving fewer complaints.

Since imposing price ceilings, the government has apprehended over a hundred violators.

He said they are open to inputs of manufacturers with regard to the suggested retail price (SRP), clarifying that if the SRP determined by the government is too low, the government can adjust the price provided the manufacturer can give just cause, like high costs.

Last week, businessmen met with DTI Undersecretary Zenaida Maglaya to complain that the SRP imposed on construction materials was too low.

“There may be some mistakes in the SRP for construction materials because the published price is below the selling price before the calamity,” Federation of Philippine Industries (FPI) president Jesus Arranza said.

In a separate interview, Arranza said the construction industry noticed some discrepancies in the figures published by the government. He said the discrepancies were small and will not even reach P10.

He said the SRP for steel, cement, wood and roofing are too low.

“There is room for adjustment in the prices. I believe there must be some mistake,” he said.

Arranza said that prices of construction materials differ by area, explaining that price is dependent on location because if demand in a particular area is low, then naturally the price will also be low.

Mindanao brings in food to Metro

Meanwhile, Philippine Airlines (PAL) vice president for Mindanao Dominador Duerme said farmers in Southern Mindanao are shipping more fruits and vegetables to the National Capital Region after typhoons “Ondoy” and “Pepeng” destroyed roads and bridges that connect Baguio City and Benguet.

Duerme said the fruits and vegetables, which PAL delivered from the south, would help augment the dwindling supply in Metro Manila.

PAL has carried an estimated 100 tons of fruits and vegetables through the Davao International Airport.

“We have not increased our freight charges and in fact prioritized agriculture products,” said Duerme, adding that there are at least 30 more tons of vegetables and fruits waiting to be loaded on the next PAL flights to Manila.

He said the airline, through its corporate social responsibility arm the PAL Foundation, has already carried 29,841 tons of relief goods to Metro Manila free of charge.

“We have carried whatever relief goods, food stuff, bananas and even medicine as assistance to the victims of the massive floods in Luzon,” Duerme said, pointing out that they carried only relief goods sent by known groups, foundations and civic clubs.

“As far as the free cargo is concerned, we do not accept those from individuals because it is easier to control those sent by foundations and civic clubs,” the PAL official said. – Ma. Elisa Osorio, Edith Regalado