DTI proposes SRP on farm products ‘on all levels’ to control price spikes
THE Department of Trade and Industry (DTI) has proposed putting suggested retail price (SRP) on farm products “on all levels”—from producers to traders to retailers—to prevent cost increases in the supply chain.
Trade Secretary Ramon M. Lopez on Monday said the DTI has submitted to the Department of Agriculture (DA) a recommendation on how to manage the prices of pork that are now surging to P400 per kilogram. He filed before the DA the proposal to put an SRP on wholesale, trading and retail of pork products until such time supply has normalized.
“We recommended to Secretary William Dar that if the government sets up an SRP on retail, we need to put an SRP as well in the wholesale and on the viajeros [traders] to make it clear that we monitor and require everyone in the value chain to comply,” Lopez said in a Senate inquiry on the rising prices of meat items, especially pork.
Lopez argued the SRP must not only cover retailers, as their pricing just moves in line with what traders sell to them. As such, he said, it is mandatory for the government to manage the selling price of those involved in the wholesaling and trading of agricultural goods.
“When the pork and other meat products enter the market, the problem is that retailers just go by what is passed onto them,” Lopez explained.
“They will add P5 or P10 because they have to profit from the products. That’s why it’s important we put an SRP at the different levels—from farm gate up to the dealers—so everyone will have to follow,” the trade chief added.
Likewise, he called on authorities with police powers to throw in a whole of government approach in combatting the rising prices of basic food items.
Lopez said the Philippine National Police (PNP) and the National Bureau of Investigation (NBI) should be included in the monitoring of wholesalers and traders. He explained the PNP and the NBI can employ their authority to look into warehouses so as to investigate cases of hoarding, collusion and profiteering in the market.
“We really have to involve the intelligence group, and that’s why the PNP and the NBI must be included in the effort to do the extra intel work on traders. We cannot see that in the market. It is important we scrutinize their warehouses to investigate profiteering,” Lopez said.
Also on Monday Sen. Christopher Lawrence “Bong” Go announced that President Duterte issued an executive order (EO) imposing a price ceiling on pork and chicken products in Metro Manila. The price cap, as requested by the DA, lasts for a period of 60 days.
As of this writing, the Official Gazette has yet to release the EO on price ceiling, but Agriculture Secretary William Dar in his proposal had asked the President to place it at P270 per kilo on pork kasim, P300 a kilo on pork liempo and P160 on chicken.
Supply of pork has been cut due to the African swine fever (ASF) crisis hounding the local hog industry. Families are finding it difficult to serve pork dishes, as prices of the meat product has reached as high as P400 per kilo on supply constraints brought about by the deadly ASF contagion.