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DTI: Increasing cost of packaging materials prompts price hike in basic goods
DTI: Increasing cost of packaging materials prompts price hike in basic goods
The increasing cost of packaging materials, including tin can, was the major reason behind the price hike of basic commodities, the Department of Trade and Industry (DTI) said.
Aside from this, the department stressed that the last increase on the suggested retail prices (SRPs) of basic goods was in 2019, adding that it has been long requested by manufacturers.
"We understand that we are still in the middle of the pandemic now. But we have to understand din po na yung manufacturers last 2019 pa sila humihingi. Marami na po tayong natanggap na request from 2019 (manufacturers have been requesting since 2019)," DTI Undersecretary Ruth Castelo said during a televised briefing Thursday, Sept. 2.
"The major reason talaga ng paggalaw ng presyo nila (of the movement in prices) is because of the increasing cost of raw material, especially packaging materials like tin cans," Castelo added.
The DTI has issued new SRPs by as much as P2 on various goods on Aug. 29. These include canned sardines in tomato sauce (plus P0 .50 centavos to P0.75 per 155 gram can), condensed milk (plus P0.50 to P1.25), powdered milk (plus P0.50 to P1.35), coffee refill (plus P0.60), coffee 3 in 1 (plus P0.50), instant noodle (plus P0.25), iodized salt (P1.40 to P2.25), detergent (plus P1), canned meat (plus (P0.75 to P2), and vinegar (up to P0.50).
Prices for bread, bottled Water, candles, toilet soap and battery are mostly unchanged.
Castelo also explained that they finally approved the movement of prices to also prevent more businesses in the manufacturing industry from stopping their production and closing, leading to more unemployment.
"Ang problema natin pagka hindi nila tinuloy ang production -- these are the lowest priced products na nasa SRP bulletin-- mawawalan ng choices ng consumers nung mga mababang presyo kaya napilitan na rin tayong gumalaw ng presyo (Our problem is when they stop their production of these lowest priced products, consumers will be left with less option. This is why we decided to move the prices)," Castelo said.
The request for price movement from the manufacturers, the undersecretary further said, were validated through the international price survey and research platforms.