Bread prices to go up by P1.50 per loaf

MANILA, Philippines - Bread prices will go up by as much as P1.50 per loaf next month after flour millers announced an increase of P60 per bag.

Walter Co, Philippine Baking Group (Philbaking) president, said in a telephone interview that a loaf of bread will go up by P1 to P1.50, while a 10-piece pack of pan de sal will increase by 75 centavos in three to four weeks.

“We cannot immediately raise the price of bread because we still need to inform the supermarkets,” he said.

The announcement was made after the Philippine Association of Flour Millers (PAFMIL) said they will increase their price to P750-P760 for a bag of 25-kilogram ex-mill flour, from P690-P700.

Soft flour will be at P650-P660 per bag from the old price of P590-P600 per bag ex-mill. PAFMIL said the increase will be felt this week.

Co said millers should not increase their price for three months even if prices in the world market have gone up due to the decision of Russia to ban wheat export.

“The increase should come in November because every time the price of wheat in the world market comes down, millers always say that they need three months before they can bring down the price given their inventory,” he said.

“The same should be followed during price increases.”

Co said given the premature increase in the price of flour, bread makers will go to the Department of Trade and Industry (DTI) to ask for a delay in price hikes.

“Their recent decision to increase the price will boost the profiteering complaint of the DTI against the millers,” he said.

Millers said they have obtained the approval of DTI before implementing the P60 increase.

The consumer arm of the DTI has decided to re-file the profiteering case against the millers because prices are still high.

In spite of the impending profiteering charges, flour millers announced that they will increase their prices.

PAFMIL said flour prices will go up as world wheat prices surged in recent weeks following a severe drought that forced the Russian government to ban the export of all grain products.

Ric Pinca, PAFMIL executive director, said as wheat traders scrambled for grains from other sources, the price of US spring wheat rose from $4.98 per bushel in June, the Minneapolis Grain Exchange September futures peaked at $7.92 before stabilizing at $7.15 last Friday, about $2 or 43.5 percent higher than the June contracts.

Hard flour is used for bread like pan de sal, loaf bread and monay among others, while soft flour is for pastries and cookies.