The chairman of the House Committee on Banks and Financial Intermediaries opposed the plan of the Department of Trade and Industry (DTI) to lift the suggested retail-price (SRP) scheme for basic necessities.
Panel chairman PDP-Laban Rep. Ben P. Evardone of Eastern Samar described the proposal as “anti-poor”, saying the DTI’s proposal would not prevent the escalation of prices of consumer goods.
“Lifting the SRP is like giving businessmen the opportunity to rake [in] more profits at the expense of [the] consuming public,” Evardone said.
“The DTI should scrap its plan to remove SRP. The consumers will greatly suffer. This will enable the manufacturers and traders to reign in the prices of their products. It is simply anti-poor and antipeople,” he added.
The lawmaker also expressed doubt on the agency’s claim that the move will promote competition.
“Instead of promoting competition, the removal of SRP will be used as a tool to increase the prices of basic goods. They should think twice or face [the] people’s wrath,” Evardone said.
Earlier, Trade Secretary Ramon M. Lopez said he wanted to “deregulate” the SRP scheme, and allow market forces to determine prices.
The Philippine Association of Meat Processors Inc. (Pampi) has also thrown its support behind the plan of the DTI, saying this would cut red tape.
Pampi President Felix O. Tiukinhoy said 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.
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.
Image credits: Alysa Salen