By Catherine N. Pillas & Jasper Emmanuel Y. Arcalas
A group of food manufacturers has thrown its support behind the plan of the Department of Trade and Industry (DTI) to lift the suggested retail- price (SRP) scheme for basic necessities, saying this would cut red tape.
Felix O. Tiukinhoy, president of the Philippine Association of Meat Processors Inc. (Pampi), said his group agrees with Trade Secretary Ramon M. Lopez, who wanted to “deregulate” the SRP scheme.
“The ongoing practice now is that SRPs of basic necessities and prime commodities are currently set by manufacturers, but are subject to evaluation and approval by the DTI,” Tiukinhoy said.
Last week Lopez said he wanted to “deregulate” the SRP scheme, and allow market forces to determine prices.
Pampi echoed the DTI’s stance that setting the SRP should be a business decision among manufacturers.
“We should give the consumer the freedom to choose what is best for him,” Tiukinhoy said. “People can patronize products with good value. But, they can boycott abusive manufacturers,” he added.
Tiukinhoy said in terms of price adjustments, Pampi and its 35 member-companies are advocating for good manufacturing practices to ensure efficient production and sound supply chain that will keep products cost-competitive.
He said Pampi supports the Duterte administration’s thrust to protect the well-being of every Filipino consumer. He said one way of doing it is to keep prices at a minimum level without denying legitimate business a fair return on investment.
“Our meat products, which are considered prime commodities, are price-sensitive and highly competitive. Minor price adjustment among market players would mean loss of market share and competitiveness. Thus, we do not see the importance of a government-regulated SRP,” Tiukinhoy said. “We fully agree with Lopez that manufacturers of basic necessities and prime commodities are hesitant to increase prices for fear of losing market share. For us, consumer loyalty is of prime importance to make our business sustainable,” he said.
Pampi noted that government regulators have earlier treated the SRP as a “ceiling price” and have imposed measures against retail stores and manufacturers found to be selling goods beyond the SRP.
The SRP schedules serve as guides of the DTI’s monitoring teams to ensure supermarkets and retailers stay within the price range recommended by the manufacturers. Aside from the DTI, four other government agencies are mandated to issue SRPs: the departments of Agriculture, Health, Environment and Natural Resources and Energy.
Canned meat is classified as a prime commodity in Republic Act 7581, or the Price Act, and is one of the one of the most scrutinized consumer products by the DTI’s Consumer Protection Group (DTI-CPG) during the Aquino administration.
The DTI-CPG had locked horns with manufacturers on setting prices in previous years. It also issued show-cause orders to those who went beyond the recommended SRP.
Pampi is a P300-billion industry association providing direct and indirect employment to over 200,000 people.