President Arroyo approved Monday anew the extension of the zero tariffs on imported food wheat and cement for the next six months in a bid to curb runaway increases in prices of the sensitive commodities.

The President sought to keep the prices of milling wheat, cement and cement clinkers stable for the protection of consumers despite potential revenue losses during a meeting with business group leaders in Malacanang, according to Trade Secretary Peter Favila.

Exempted from the President's zero-tariff extension is feed wheat after corn farmers complained that they could not fairly compete against imported feed wheat with zero-duty privilege.

Favila said the continued implementation of a zero-percent tariff may contribute to the country’s deficit but the President is determined to ease the burden of consumers, particularly with the announced increase in bread prices starting yesterday.

"Revenue losses are outweighed by the benefits that these will bring to consumers," Favila said at the sidelines of the President's luncheon meeting with business leaders in the Palace.

As in previous months, the government is hopeful the zero-percent tariff on food wheat is expected to bring down the prices of basic food items like bread, particularly pan de sal (salt bread), a staple for many poor Filipinos.

The President effectively extended the life of an executive order issued last July 2009 that removed the tariffs on food wheat and cement. The presidential directive expired last month.

Mrs. Arroyo first reduced to zero percent the tariff on food wheat, feed wheat, cement, and cement clinkers in December 2008 and then extended the order last July 2009.

Prior to the removal of the tariff, the government was slapping a three percent duty on milling wheat coming from member countries of the Association of Southeast Asian Nations (ASEAN) and 5 percent from those outside the regional bloc.

The same tariff conditions applied to cement coming into the country.