Flour prices up; effect on bread prices yet to be seen
abs-cbnnews.com | 08/02/2008 10:25 PM
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Bakeries in Metro Manila might be using higher-priced flour for their breads the next time you buy -- in other words bread prices might get affected.
This as the Philippine Baking Industry Group (Philbaking), which has 70 percent of total supermarket bread sales in the country, announced that starting next week flour prices will rise by P30 to P40 per 25-kilo bag or a 4 to 6 percent increase.
If implemented, Simplicio Umali, president of Philbaking, said they will be forced to increase the price of loaf by more than a peso.
They say this will also have an impact on the price or size of pan de sal, the most common bread consumed by the public.
"Tumaas din kasi ang presyo ng ibang raw materials like shortening, premium margarine, rental cost, pati na LPG (liquefied petroleum gas)," said Federation of Bakers Associations Inc. Vice President Lucito Chavez.
But the Association of Flour Millers (AFM) said the increase will only be P13 and not P30 to P40.
Ric Pinca of the AFM said from P957 per 25-kilo bag, flour will increase to P970.
This after world wheat prices rose to $600 per metric ton in July from $500 per metric ton in June.
Pinca added the minimal increase should be no reason for any bread price hike.
"Maliit lang ang impact ng P13 kaya we see no reason kung bakit ganun kalaki ang itataas… dapat mga P0.60 lang,” Pinca said.
Nevertheless the baking industry has filed a petition before the Department of Trade and Industry on Friday to refrain the AFM from increase flour prices which will also trigger a bread price hike. With areport from Cecille Lardizabal, ABS-CBN News
