Daily Tribune‘For now, we can say the manufacturers are willing to hold off any increase for as long as they can. It is difficult to say when they will adjust prices because the cost of raw materials and ingredients used are also subject to market forces.’
(From left to right) Consumer Protection Group officer-in-charge Assistant Secretary Jean Pacheco, Trade Secretary Fred Pascual, and Chief-of-Staff and Undersecretary Ana Carolina Sanchez met with various manufacturers to tackle the price increase for basic necessities and prime commodities. | PHOTOGRAPH COURTESY OF DTI
The Department of Trade and Industry has announced that several manufacturers have temporarily forgone their requests for price increases after Trade Secretary Alfredo Pascual requested them to be mindful of the consumer's plight amid the skyrocketing prices that they have to endure these days, as a result of their meeting last Thursday afternoon.
On 21 September 2023, the DTI convened a meeting with manufacturers of basic necessities and prime commodities, where a total of 29 manufacturers and two associations of canned sardines, coffee, processed milk, bread, salt, detergent, candles, condiments, bottled water, canned meat, toilet soap and batteries participated in the said dialogue.
According to DTI Undersecretary Communications and Legislative Affairs Kim Lokin, Secretary Pascual's meeting with manufacturers went well, as these firms are willing to hold off on a price increase for now.
"Although of course, they raised concerns that on the production level, there is indeed an increase in cost. Sec Pascual is very appreciative of the gesture," she said.
Manufacturers assured
On the other hand, the Trade chief assured manufacturers that he would also consider their plight, and the need to sustain their businesses and provide jobs.
Lokin said the DTI will hold another round of consultations, especially for those who have serious or urgent concerns, which will be on a case-to-case basis.
Further, the DTI undersecretary stressed that this does not mean that forgoing the price increase is definite until Christmas.
"For now, we can say the manufacturers are willing to hold off any increase for as long as they can. It is difficult to say when they will adjust prices because the cost of raw materials and ingredients used are also subject to market forces. Sec Pascual would have to consider all stakeholders, although of course in his mind, consumers' needs are paramount," Lokin stressed.
Concerns
During the dialogue, manufacturers expressed their concerns about various issues, including the imposition of pass-through fees; lack of local supply of raw materials; the compliance requirements of other government agencies, and other regulatory concerns.
As of 19 September 2023, 14 manufacturers of 46 Stock Keeping Units covering 10 categories of BNPCs requested retail price adjustments due to the high cost of major raw materials, packaging materials, fuel costs, wages, and other costs that affect the production of essential goods.
In their statement, the Philippine Association of Meat Processors Inc. said that manufacturers of Noche Buena products decided to absorb the bulk of rising costs.
"In our commitment to observing the Christmas spirit and ensuring everyone can enjoy the festival season," PAMPI said. "We are working diligently to manage rising costs. Production costs have risen by an estimated 10-15 percent, most of these products will only see a modest price increase of 0-4 percent", PAMPI added.
Meanwhile, Pascual said he is also committed to closely working with the salt and canned sardine manufacturers to address their specific concerns.
The DTI secretary ensured that all concerns raised were taken into consideration and vowed to support the manufacturing sector, urging them to go into value addition.
