MANILA, Philippines — While bakers groups have committed not to raise prices of Pinoy Tasty and Pinoy Pandesal this Christmas season, they also asked government to facilitate the importation of cheaper but quality flour from Indonesia to offset increases in toll fees, electricity, LPG and diesel prices.

In a statement, the bakers groups led by the Philippine Baking Industry Group said that these other cost factors are pushing prices of bread higher.

However, while bakers and flour traders can readily import flour from Indonesia such move is also a challenge.

“Bringing in the flour directly is difficult due to the long regulatory processes required by the Food and Drug Administration before issuing the certificate of Product Registration (CPR) which is needed for flour importation,” the groups said.

Malabon Long Life Trading, the lone importer of Indonesian flour is trying to meet the demand of lower-priced imported premium flour which is of the same quality as the locally milled premium flour similarly made from US Wheat.

Local bakers are now negotiating with PT Eastern Flour Mills of Indonesia for the importation of flour.

Right now, imported premium flour volume is only enough for the production of Pinoy Tasty.

Bakers are now pushing for the flour importation to bring in competition in the country to lower prevailing prices of local flour which can result in lower bread prices for the benefit for the consuming public.

Bakers said they have to maintain the price of Pinoy Tasty and Pinoy Pandesal even if the local flour millers continue to refuse to lower their flour prices that are supposedly due in November and December to reflect the downward trend in global wheat prices.

Based on US Wheat price data, wheat prices have gone down to $392 per metric ton from its February price of $526 per MT or a 25 percent decrease. However, local premium flour prices remain at a high level of P900-P930 per 25-kilogram sack.

Pinoy Tasty is offered at P38.50 per 450 gram loaf and Pinoy Pandesal at P25 per 10 pc pack, wherein branded loaf breads are usually in the P50 to P60 range and branded pandesal at P30 to P40 price ranges.

These industry initiated subsidized products have now become the benchmark price for bread in the market as bakeries align the price of their brand products on the price of Pinoy Tasty and Pinoy Pandesal.

Bakeries who price their breads higher may face drops in sales volume as consumers now have an alternative with Pinoy Tasty and Pinoy Pandesal.(BCM)