Bread bakers are actively pushing to raise prices of Pinoy Tasty and Pinoy Pandesal by as much as P4 per pack, possibly in two tranches.
“We will propose to the DTI (Department of Trade and Industry) to allow us to increase prices effective August 30. We decided to hold off for two months to help consumers cope with food inflation,” said Philippine Baking Industry Group (Philbaking) president Johnlu Koa.
Bread makers have produced budget breads as part of their corporate service. However, Philbaking said they are forced by circumstances to impose price hikes due to the increasing cost of raw materials like flour and sugar.
The price of hard flour increased to over P1,000 per 25-kilogram bag from around P750 to P780 in 2021.
Flour millers are expecting prices of imported wheat to spike anew in the second half of 2022, given record inflation and the outside dynamics of global wheat supply and demand.
Prices of refined white sugar, meanwhile, nearly doubled to P97 per kilo from P58 in early 2022.
Both raw materials are major ingredients for making bread.
“They (government) should decide and bite the bullet because we could lose employment if we will not help the bakers and it is very difficult to halt and restart,” he said.
Budget breads did not make it to the latest round of Suggested Retail Price (SRP) bulletin published August 12, 2022 by the DTI.
At present, Pinoy Tasty retails at P38.50 and Pinoy Pandesal at P23.50 per pack.
Last month, the Asosasyon ng Panaderong Pilipino warned there could be a “shrinkflation” where bakers could resort to shrinking the serving size of pandesal instead of effecting a price increase.
The DTI on Friday issued two new SRP bulletins on basic necessities and prime commodities (BNPC) as well as school supplies.
The SRP bulletin on BNPCs covered processed canned meats, canned sardines, instant noodles, mineral water, detergents, toilet soap, vinegar, milk, coffee, and batteries, among others.
The last price adjustment on BNPCs was issued in May. The DTI limits the price adjustment to 3 to 5 percent from the previous SRP.