DTI OKAYED P2 INCREASE IN PRICE OF PINOY TASTY; NOW P38 PER 400-G LOAF
MANILA, JANUARY 10, 2011 (MALAYA) The Department of Trade and Industry (DTI) has given the go-ahead signal for bakers to increase the price of the subsidized, basic loaf bread Pinoy Tasty due to higher prices of raw materials.
DTI Secretary Gregory L. Domingo said the price of Pinoy Tasty has to go up due to higher flour and sugar costs. Bakers who are part of the Pinoy Tasty program sought a P2 increase from P36 per 400-gram loaf to P38.
Domingo said mill gate prices of sugar have gone down but the reduction has not been reflected at retail. The retail price before Christmas was P54 to P55 per kilo and went up to P57 to P58 after Christmas. Last week, sugar prices rose further to P65.
Domingo said even if the price of sugar drops, Pinoy Tasty needs to increase its price because flour prices are up. "Sugar is just 10 percent of the cost of bread. The biggest component is still flour," he said.
Contributing to the increase in flour prices – up 15 percent according to some millers – was the restoration of the 3 percent tariff on milling wheat.
Domingo said the EO extending the zero duty hopefully would be issued before Congress resumed session.
Bakers filed for the price hike before Christmas, effective January 6, but held off the adjustment on indications sugar prices were stabilizing.
Apart from sugar and flour, the price of shortening which is also a basic raw material has also gone.
Costs of packaging are also rising due to higher petroleum prices and, most recently, higher toll fees which add to the cost of transporting bread products.
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