THE Canned Sardines Association of the Philippines (CSAP) said the Department of Trade and Industry (DTI) needs to allow price increases to help the industry recover its costs, and noted that the Price Law is silent on the government’s preferred manner of price-setting, the suggested retail price (SRP) scheme.
“We understand that the DTI needs to perform a balancing act for both the manufacturers and the consumers. However, we are concerned that another round of fuel price hikes would drive up production costs by 3.5%,” CSAP Executive Director Francisco J. Buencamino said in a statement.
“The industry does not want a repeat of what happened during the height of the pandemic where the suggested retail price (SRP) was not adjusted for years and caused the canned sardine industry to suffer huge losses,” he added.
The CSAP said an SRP bulletin is an “act of price control,” noting the measure’s vagueness on trigger events that warrant the imposition of a prevailing price or ceiling price, which are the only valid forms of price control recognized by the Price Act, according to the association’s reading of the law.
Republic Act No. 7581 or the Price Act was passed to ensure reasonable prices for various necessities and prime commodities sold to the public.
“The SRP is recommendatory in nature so it should not be limiting the industry from implementing sound price adjustments, especially today when the odds are working against us,” Mr. Buencamino said.
“There is no provision in the Price Act requiring retailers to wait for the agency’s prior approval before implementing any price increase,” he added.
The CSAP said it expects to meet with the DTI within the week to discuss the matter. — Luisa Maria Jacinta C. Jocson
