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More manufacturers to postpone Christmas Eve price increases
MANILA, Philippines – More manufacturers have agreed to postpone price increases for Noche Buena products, the Department of Commerce and Industry (DTI) reported.
“Apart from CDO, Century and Virginia Foods meat products, other brands responded to our call to maintain prices in light of the pandemic and the difficulties of many Filipinos,” Commerce Secretary Ramón López said in a Viber message. to reporters yesterday.
“Brands such as Lady’s Choice, Clara Ole, UFC, Alaska confirmed that they will not increase the prices of their Christmas Eve products,” he added.
Lopez said the agency expects more brands to join the movement to keep prices stable.
The DTI received requests from manufacturers to increase the prices of some products used for the celebration of Christmas Eve such as ham, spaghetti, tomato sauce, elbow macaroni, cream, sandwich spread, mayonnaise and cocktail of fruits between one and three percent.
In addition to Christmas Eve items, there are also requests to raise prices for staples like milk, sardines, canned meat, and instant noodles.
Given the ongoing pandemic, Lopez previously said that requests for price increases are being carefully studied.
He said manufacturers have also been asked to justify their requests by showing cost increases in dollars and the cost of delivery in pesos.
Citing the pandemic, unemployment and the strength of the peso, López also previously said that suggested retail prices (SRP) should not change unless there is a strong cost justification. SRPs serve as a guide for consumers in their purchases.
Meanwhile, the Meat Importers and Traders Association (MITA) is calling on the government to lower tariffs on pork imports to moderate skyrocketing prices in the local market following continued supply shortages due to swine fever. africana (ASF).
In a letter sent to the director general of the National Authority for Economy and Development, Karl Kendrick Chua, the group urged that the Committee on Tariffs and Related Affairs (CTRM) at the cabinet level consider reducing tariffs on pork imports. by at least 50 percent. The CTRM, which reports to the NEDA Board, is mandated to advise the President on matters related to tariffs and other international developments and their effect on the Philippines.
MITA President Jess Cham suggested that the duty on pork imports within the quota be lowered to 10 percent from the current 30 percent, while the tax on pork outside the quota be lowered. to 20 percent from 40 percent.
“The effectiveness of the reduction should be until December 31, 2025. This can be done in conjunction with the reduction in the tax rate for mechanically deboned meat,” said Cham.
“We are now feeling the effects of the pork shortage caused by African swine fever, which is a very difficult disease to eradicate and we anticipate that the supply of pork will remain scarce for many years,” he added.
The Department of Agriculture (DA) recently adjusted up the suggested retail price for pork products as supply remains tight. Pork prices currently range from P320 to a maximum of P360 per kilo.
Reducing tariffs on imported commodities is not new. Former President Gloria Macapagal-Arroyo temporarily lowered import tariffs on pork and poultry on several occasions during her tenure.
In 2018, President Duterte, through an executive order, reduced tariffs on imported fish, corn, vegetables and feed wheat to zero to curb inflation at the time.
Duterte can only issue an EO when Congress is in recess.
Inflation accelerated to 2.5 percent in October and the government attributed the rise in consumer prices to spikes in food prices, particularly pork and fish.
“If pork tariffs are not lowered, nothing will dampen the rise in the price of local pork. Stock will run out at Christmas. The situation is different now, Luzon production is not there and ASF is likely to continue spreading, ”said Cham.
“Lowering import tariffs will certainly help our country and the economy recover from COVID-19 and provide our consumers with affordable meat for their protein requirement,” he added.
While the DA is already moving to transport pigs and pork from Visayas and Mindanao to Luzon, Cham emphasized that these cannot meet demand and that whatever is brought to the island would not be sustainable both in price and in volume. – Louise Maureen Simeon
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