Tuesday, October 07, 2008 Flour, cement makers told to justify rate hikes
THE Department of Trade and Industry (DTI) has given manufacturers of flour and cement in the country until October 10 to justify any rate increases.
Trade Secretary Peter Favila said he has already issued a subpoena duces tecum to the members of the cement and flour industry, as well as bakers to require them to submit their records and documents indicating the rate hikes they implemented recently or set to implement soon.
Favila said this would help “ascertain the validity or the justification of all price increases that have been done.”
The DTI earlier warned manufacturers of flour and cement of charges if proven that they have raised their rates unfairly or without basis.
“That’s why we have to go through the process. We need to see the records and documents and if there’s none, then we proceed. After all it’s all provided for in the law,” Favila added.
The Philippine Association of Bakers last month announced that due to the high cost of flour, they would raise the prices of their breads by at least a peso each. The size of pan de sal, a staple of Filipinos, would be reduced further.
The Cement Manufacturers Association of the Philippines, for its part, said it may raise its prices of cement to more than P200 per 40-kilogram sack soon as the current prices do not reflect the production cost.
At present, a sack of cement is sold at P190 to P195. (JMR/Sunnex)
