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EVEN as
bakeries and other bread manufacturers have announced a
new round of price increases for their products, it
seems that consumers will not get a relief from the
continuous increase in the price of flour-based products
like bread and noodles in the coming months.
Ric
Pinca, executive director of Philippine Association of
Flour Millers Inc. (Pafmil), said that while there is no
shortage of wheat in the market, the price of hard and
soft flour may still increase in the coming months.
“We have
enough wheat, but the thing is, raw materials are very
expensive,” said Pinca.
The
Pafmil official noted that China’s decision not to grant
the Philippines’ request for an allocation of flour will
impact on prices.
Pinca
said sourcing flour from China is cost-effective since
it is nearer to the
Philippines.
Currently, flour millers source their wheat requirements
from the United States, Canada, and Australia.
Pafmil,
however, declined to say when they will increase the
price of their products. “With the way commodity prices
are going up in the world market, there’s a possibility
that flour millers may increase their prices within the
year,” he said. On Wednesday, bakeries announced that
the price of
pan de sal may go up to P3.50 per piece as the price of
hard flour used for making breads increased last March.
Pinca
disclosed that hard flour—the variety used in making
breads—is now sold at P957 per 25-kilogram bag. Soft
flour—the type used to make cakes, pastries, crackers
and noodles—is now priced at P870 per 25-kilo bag.
Less
than a year ago, hard flour was sold at P610 per 25-kilo
bag; and soft flour at P530 per 25-kilo bag.
Pinca
said a host of factors have been responsible for the
unabated increase in the price of basic foodstuffs such
as rice, corn and wheat. The main culprit, he said, is
the rush to produce bioethanol in the US.
As
bioethanol production went full swing, the main users of
corn, such as the livestock and poultry sector, turned
to alternative raw materials for making feeds, such as
wheat, causing global supply to tighten. |
