ADJUSTMENTS to the suggested retail prices (SRPs) of some basic commodities are equivalent of about half of the higher production costs currently being absorbed by producers, the Department of Trade and Industry (DTI) said.
Trade Undersecretary Ruth B. Castelo said in a statement Friday that the recently announced price hikes help address a global surge in raw material and packaging costs.
“All requests for adjustments were carefully reviewed to ensure that prices were reasonable. The DTI made sure that the price adjustments are justified,” Ms. Castelo said.
“Not allowing reasonable price adjustments despite cost increases will affect the investment climate, business viability and ability to keep the jobs in their companies,” she added.
On Jan. 27, the DTI released the latest SRP list for basic and prime commodities. Under the new list, prices for 66% or 143 of the 216 stock keeping units (SKUs) were maintained, while 34% or 73 SKUs saw their prices raised.
DTI said the price increases of around 86% of the 73 SKUs range from 1% to 9%, which it claimed was lower than the rate of cost movement of some raw materials.
Some of the products whose SRPs were raised include bottled water, processed canned meat and canned beef, instant noodles, salt, and canned sardines.
According to the DTI, the cost of raw materials such as mechanically-deboned meat used in processed meat products rose 25% to 100%, that of tin cans rose 133%, buttermilk powder, which is used in processed milk, up 46%, and flour up 40%.
“(We) ensured that price adjustments for the 73 SKUs were kept to a minimum to ensure that consumers continue to have access to reasonably-priced goods in the market,” the DTI said.
“The last price increase of some of the products such as bread, bottled water, candles, and salt were implemented four to eight years ago, and that the DTI delayed the adjustment of goods prices for two years before releasing the SRP in August 2021,” it added. – Revin Mikhael D. Ochave
