Some local flour millers are defying the government’s appeal to food manufacturers to lessen their suggested retail price in the wake of lower pump prices.
Members of the National Price Coordinating Council noted Tuesday in a meeting that a group of flour millers did not reduce their prices, citing port congestion as the reason for not answering the call of the government.
“When milk companies and even construction and steel companies have been reducing their prices, flour companies are still defiant. They are not are moving their prices when they know how important their price adjustment is since all breads and pastry products prices are dependent on the price of flour,” Trade Undersecretary for consumer protection group Victorio Dimagiba said.
He said the Wellington and Liberty flour brands were still selling P50 higher than the competition.
“We are now preparing import documents from the Bureau of Customs since we might be looking at a possible case of violation of the price act. We will file the case before the Justice Department,” Dimagiba said.
The Trade Department also noted the refusal of trucking companies to trim their rates at between P20,000 and P30,000 per trip compared with the pre-port congestion rate of P8,000 to P10,000 per trip.