DTI Ensures Consumer-Manufacturer Balance Amid Rising Prices of Necessities
The Department of Trade and Industry (DTI) is actively addressing the concerns of both consumers and manufacturers regarding the increasing prices of basic necessities and prime commodities (BNPCs) and the high costs of production. DTI Secretary Alfredo E. Pascual confirmed this commitment following a consultation meeting held on September 21. Manufacturers of BNPCs agreed to postpone price hikes this year, despite facing rising fuel and input costs. The meeting saw the participation of 29 manufacturers and two associations representing various essential goods, including canned sardines, coffee, processed milk, bread, salt, detergent, candles, condiments, bottled water, canned meat, toilet soap, and batteries.
As of September 19, 2023, 14 manufacturers across 10 categories of BNPCs, encompassing 46 Stock Keeping Units (SKUs), requested adjustments to the suggested retail prices (SRP) due to the increasing costs of major raw materials, packaging materials, fuel, wages, and other production-related expenses.
During the meeting, BNPC manufacturers expressed their willingness to temporarily refrain from raising prices, a gesture that Secretary Pascual expressed gratitude for. “I appreciate your support, and I am happy to hear that many are willing to hold off price increases,” said Pascual. He emphasized the DTI’s recognition of the need to cater to both the growing middle class, who can afford premium products, as well as consumers who survive on a day-to-day basis.
The DTI plans to conduct further case-to-case consultations with manufacturing representatives to address urgent concerns. Following these consultations, trade officials will assess the outcomes, taking into account feedback from manufacturers and the market at large.
During the dialogue, manufacturers highlighted various issues, such as the imposition of pass-through fees, limited local supply of raw materials, compliance requirements from other government agencies, and other regulatory concerns. The Philippine Association of Meat Processors, Inc. (PAMPI) issued a statement announcing that Noche Buena product manufacturers had decided to absorb a bulk of the rising costs to ensure everyone can enjoy the holiday season. It is estimated that production costs have increased by 10-15%, resulting in modest price hikes ranging from 0-4%.
Furthermore, Secretary Pascual committed to closely working with salt and canned sardine manufacturers to address their specific concerns. He assured all raised concerns are being taken into consideration and pledged support to the manufacturing sector, encouraging them to pursue value addition. “We have survived the COVID-19 pandemic, so I am confident that, by keeping our communication lines open and working together, we can grow the manufacturing sector,” he stated.
The trade and industry chief also promised to assist the industry in resolving various issues by collaborating with other concerned government agencies to lower operating and distribution costs.
To guide consumers and retailers, the DTI regularly issues the SRP bulletin for basic and prime goods. Consumers are encouraged to refer to the most recent bulletin on the DTI website before visiting supermarkets and grocery stores. Additionally, consumers are urged to report retailers, distributors, and manufacturers who sell basic necessities above the SRPs through the One-DTI (1-384) Hotline or via email at [email protected].
