THE government is set to issue a department order that aims to remove the suggested retail price (SRP) on basic goods and prime commodities.
Department of Trade and Industry (DTI) Assistant Secretary Agaton Uvero said the agency is preparing a department order that will replace the SRP system with a price range system on basic and prime goods.
There are hundreds of basic goods that have existing SRP set by manufacturers and monitored by the government on a regular basis. Examples are some low end brands of sardines, instant noodles and even Pinoy tasty and Pinoy pandesal.
Uvero said historically speaking, prices of manufactured goods are more stable than agricultural items like rice, meat and vegetables.
Manufacturers adjust their high end brands in order to recover costs as the DTI does not usually allow increases that often.
Won’t prices soar without SRP?
When asked what happens if prices soar once the SRP is gone, Uvero said the government can always revert back to the SRP regime if manufacturers abuse the system.
The SRP, he said, can only be implemented during calamities to ensure that retailers do not take advantage of disruptions in supply.
Meanwhile civil society group Bayan Muna said it is worried that prices of basic goods will spike once the SRP is gone. Bayan Muna official Ferdie Gaite said the government should instead strengthen the SRP system as prices of basic goods rise almost every quarter.
Supermarkets assure no drastic spike
The Philippine Amalgamated Supermarkets Association (PAGASA) said the group has long been lobbying to remove the SRP on basic goods and let competition and market forces dictate prices.
PAGASA Executive Director Steven Cua said manufacturers will not increase prices unnecessarily due to competition. There are a number of players in the industry who will ultimately bring down prices further to attract customers and improve market share, he said. (ABS-CBN News)
