Bakers to cut prices by P1

MANILA, Philippines - Bakers announced they will be cutting the price of loaf bread from 50 centavos to P1 this month after flour millers agreed to reduce the price of flour to P740 per bag.

Philippine Federation of Bakers Association (PFBA) vice president Lucito Chavez said the price reductions are the direct result of the move of flour millers to cut the price of flour. However, he said they expect more price cuts for bread since the government is cracking down on flour millers to further reduce their prices.

He said community bakers will retain prices at P2 to P2.50 each but will increase the weight from 25 grams to 30 grams. However, Walter Co, president of the Philippine Baking Industry (PhilBaking) said the price of a 10-pack of pan de sal will go down by 50 centavos for big bakers.

Co explained that millers have reduced prices by P20 to P40 per bag starting last week. He said that for every P40 drop in flour prices, the price of loaf bread will go down by P1 while a 10-pack of pan de sal will decrease by 50 centavos.