Consumers may have to brace themselves for a hike in bread prices, after bakers last week filed a petition with the Department of Trade and Industry (DTI) to jack up the prices of loaf bread by P1 to P1.50 and of a 10-pack of pan de sal by 50 to 75 centavos.
They sought no increase for the generic loaf Pinoy Tasty which currently costs P39.
In an interview on Wednesday, Philippine Baking Industry Group president Walter Co said the petition was to be discussed in a meeting with DTI officials on Friday.
The meeting, however, was canceled at the last minute.
He said a 25-kg bag of flour cost P920. Coupled with the increase in price of cooking oil, shortening, diesel and wages, bakers were hard-pressed not to ask for a price hike, he added.
“Our last increase was in March, and even then we only factored in the high flour prices. While sugar prices went down, this was not enough to offset the increase in prices of the other factors of production. We’ll show the DTI data on these,” he said.
Right now with bakers not being able to hike prices, he said it would be difficult for them to upgrade their equipment so they could produce better-quality products more efficiently, thus lowering costs.
As with any business, bakers must set aside funds for equipment upgrades.