Suggested retail prices for branded bread products and cement type 1P

2019-01-15 20:42:58

Dear Undersecretary Castelo,

Laban Konsyumer Inc.  respectfully submits for the DTI action our proposals to include branded bread products and cement Type 1P in the Expanded Suggested Retail Prices of basic necessities and prime commodities.

On branded bread products

On branded bread products, we recall that the DTI announced last year that it was adding branded bread products in the Expanded SRP issued in October, 2018. Historically, branded bread were included in the SRP until the DTI launched the Pinoy Tasty and Pinoy Pandesal during the term of the Aquino administration. In consultation with the bread industry, as well as to promote to the consumers the Pinoy Tasty and pandesal, the branded bread were deleted and in lieu Pinoy Tasty and pandesal were included.   It was important to ensure that the prices of Pinoy Tasty and Pandesal remain uniform in all supermarkets and groceries nationwide.

Last month, the DTI announced that Gardenia   will reduce prices by 1 to 2 pesos. For unexplained reasons , and partly we have informed you thru text, that Gardenia’s  600 gram remained  at Php 64.00 and the 400 gram at Php 46.75 apiece. Those prices remain as such today. We had monitored that the Gardenia prices for the pandesal in pack of ten pieces was reduced by 1 peso.  Rolling backwards, the same brand increased their prices by 1 and 2 pesos a piece in September to October last year, unilaterally, and it was Laban Konsyumer Inc. that brought the increases to DTI as well as the media information.

Bread is a basic necessity under the Price Act, as amended. For the same reasons that the DTI issued an Expanded SRP on basic necessities and prime commodities, it would be urgent to add branded products in the list as well.  Laban Konsyumer Inc. is not aware if there are pending enforcement steps taken by the DTI on the concerned parties, but the unannounced increases and the noncompliance to a rollback are strong reasons for DTI to act now.

 On Cement Type 1P

Another prime commodity that used to be in the SRP is cement type 1P. We could not recall when and why cement was deleted in the SRP.  Using data from the DTI E Presyo, please be informed that retail prices of cement had increased over the last three (3) months. We summarize selected data and areas for brevity.

 

Area/Brand
Prev price in Php/40 kg bagA week ago in Php/40 kg bag
A month ago in Php/40 kg bag
3 months ago in Php/40 kg bag
NCR




Manila




Advance
230230230215
Mayon         
225225225225
Quezon City



Republic---217217210
Rizal215215215---
Advance220220220220
Makati



Rizal240250235235
Advance240240240240
Paranaque



Holcim225225
225
225
Rizal225
225
225
225
Advance220220
220
220
Mandaluyong



Rizal230230
230
230
Cebu



Cebu City



Apo 203198198
198
198
Holcim195195188188
Mindanao165165165165
Republic185185
185
185
Grand Poz


178
Davao City



Apo205205
205
200
Holcim220220
220
220
Republic212212205212
Iloilo



Iloilo City



Apo215215
215
215
Holcim215
215
215
215
Republic200200200---

There are no monitoring reports from Baguio City; Calamba, Laguna; Lipa, Batangas, Cagayan de Oro and San Fernando, Pampanga.  

In 4 hardware stores in Fairview, Quezon City, Advance Eagle ranges from 215 to 220 while Republic is selling at 230 -235 pesos per 40kg bag.

Based on the DTI E Presyo, the brands of cement in the monitoring lists are Ha Long, Grand Premium, Red Lion, Mayon, Northern Cement, Grand Pozzolan, Advance Eagle, Rizal, Republic, Holcim Excel, Apo and Mindanao.

We propose that the brands listed in the DTI E –Presyo be maintained and a separate SRP for Luzon including NCR, Visayas and Mindanao. 

Industry sources show that pick up prices from local plants and importer warehouses range from Php 185 – Php 195 pesos per 40 kg bag and add Php 10.00 transport per bag and maximum Php 20.00 per bag margin or profit for the supply chain, and SRP of Php 210 to 215.00 per bag is reasonable at this time.

Thank you for your prompt consideration.

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