LKI POSITION PAPER AGAINST SRP INCREASES

2019-10-07 01:06:03

September 19 , 2019


Director Domingo Tolentino , Jr. 

Consumer Protection and Advocacy Bureau

Department of Trade and Industry 

Makati City 



SIR: 



There were news reports that manufacturers of coffee , noodles and sardines are poised to Implement new rounds of increases in their Suggested Retail Prices within the month of September.  I earlier sent you a viber text message to fend off such increases until the impact on oil prices are stable and reasonable due to the Saudi Arabia forced majeure incident . 


The Laban Konsyumer Inc .   an accredited DTI consumer organization respectfully submits that the Bureau thoroughly investigate the basis of such increases .


Our research show that the costs of  raw materials of Tin, coffee , wheat for noodle , tamban for sardines , foreign exchange rate and power rates are either flat , stable and as to be pointed out here reduced and    Lower for the year 2019. 


Our research are based on reliable international data for raw materials . 



1. For coffee, over the period 2014 to 2019 , the cost coffee are at its lowest , from 4.8 usd per kilogram to 2. 5 usd per kilogram . Attach Table Coffee Mundi.


2. For tin , prices in 2019 had decreased by 14.43 percent . 


Attached are relevant graphs from Trading economics . 


3. For wheat , based on the Minneapolis wheat exchange data for 2019, wheat prices have gone done .  See attached MGEX wheat table .


4. Tamban prices based on PSA Zambonga also show a downward pattern for the year 2019..


Here are the Nov  2018 to August 2019 monthly wholesale prices in pesos per kilo per month


Nov 38.31


Dec 37.69


Jan 31.77


Feb  28.67


Mar 32.08


April 32.31


May 35.46


June 40.25


July 33.92


August 37.46 


5. The phil pesos vs usd had remained firmed at 52 pesos per usd and appreciated to 51 pesos beginning 3rd qtr . Attached are the quarterly BSP exchange rate . 


6. Power rates of Meralco had gone down for 5 consecutive  months . 



Given all the above information , we believe there are no sufficient justification for increases in the SRP of coffee, noodles and sardines . 



Albeit , the Bureau should consider appropriate rollbacks of the SRP of these products .  For the record , from  2018 3rd quarter to June 2019 , most brands if sardines had increased prices by no less than twice or thrice in that period , as well as adjustment in 3 in 1 coffee and a brand if noodle . 


Consumers deserve your protection . It is the role of LKI to ensure that consumers right to information are heard and that prices are plain and simply reasonable . 



The graphs are to be sent after this cover text . Thank you very much. 



Atty Victorio Mario A. Dimagiba

President 

Laban Konsyumer Inc.n

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