Producers talked out of price hikes until yearend

THE Department of Trade and Industry (DTI) said manufacturers had arrived at a “consensus” to delay price increases until the end of 2023.

“What happened in our meeting with the manufacturers is at least six of those who had submitted requests for price adjustments said that they are withdrawing their requests,” Trade Secretary Alfredo E. Pascual said at a briefing on Wednesday.

“This had an influence on the other manufacturers resulting in us having a consensus to hold off on price adjustments until the end of year,” he added.

On Sept. 21, the DTI convened a meeting with manufacturers of basic necessities. It was attended by 29 manufacturers and two industry associations, representing goods like canned sardines, coffee, processed milk, bread, salt, detergent, candles, condiments, bottled water, canned meat, toilet soap, and batteries.

According to Mary Jean T. Pacheco, assistant secretary and officer-in-charge of the DTI’s Consumer Protection Group, the six manufacturers withdrawing their requests make bottled water, candles, condiments, bread and toilet soap.

“We’re meeting with canned sardine manufacturers tomorrow because we continue to appeal that there will be no price adjustments until the end of the year,” Ms. Pacheco added.

Mr. Pascual said that the DTI is also considering allowing canned sardine prices to be “rounded off” on the advice of the Bangko Sentral ng Pilipinas (BSP).

“This is strictly not a price adjustment, but rounding off the price, because the BSP ordered the rounding off of prices by 25 centavos,” he said.

According to the BSP, rounding off is supposed to generate efficiencies in the delivery of goods and services and to maximize government resources by reducing demand for coins needed to make change.

Melquiades Marcus N. Valdez II, DTI director for consumer policy and advocacy, said that the department will encourage manufacturers to apply the rounding-off scheme.

“The manufacturers will send us notices of their adjustments,” Mr. Valdez said. “After that we assess whether there is profiteering or whether it is within the 10% threshold dictated in the Price Act. Once we come up with the price, we will verify with the BSP (details of) the price rounding scheme — whether we will round up or down,” he added. — Justine Irish D. Tabile