MANILA, Philippines — The government has removed for good the tariff on wheat imports, a move that would give local flour millers a level playing against flour imports and hopefully bring down prices of flour.

Trade and Industry Secretary Gregory L. Domingo told reporters the zero tariff on wheat imports is part of the government’s Comprehensive Tariff Reform Program, which was approved last January 14.

Domingo said the zero tariff would impact on locally milled flour in three months.

“On the flour millers, the zero duty would provide them a level playing field,” Domingo said.

Imported flour is coming in duty-free from Indonesia being an ASEAN country. Turkey also exports flour to the Philippines at 7 percent tariff.

“The impact on consumer is this could result in lower prices of locally milled flour, but not necessarily,” Domingo said noting that if price of wheat in the international market increases this would not result in lowering of flour prices.

Based on the DTI Price Monitoring, the price of soft flour (for pandesal and biscuits) per 25 kilogram bag is P790 (Amigo Grade II) and P810 per bag (Countess Grade III) brands. For Grade 1 flour the prevailing prices are P900 for Angel White or 15 percent up from P780 a year ago; Emperor at P940 or 13.94 percent from P825 a year ago; King P980 or 11.66 percent up from P815 last year; and Wellington at P940 or 16.05 percent up from P810 a year ago.

In the past, however, flour millers have repeatedly said that the lifting of tariffs on imported wheat will not amount to any reduction in prices of locally milled flour.

The Philippine Association of Flour Millers Inc. (PAFMIL) said that the net effect of a zero duty is negligible and will therefore not result a reduction in flour price nor can prevent them from increasing their prices.

There are 11 flour manufacturing companies in the Philippines producing about 1.5 million tons of flour. There are: Delta Milling Corporation, General Milling Corporation, Liberty Flour Mills, Morning Star Milling Corporation, Philippine Flour Mills, Philippine Foremost Milling Corporation, Pilmico Foods Corporation, RFM Corporation, San Miguel Mills Inc., Universal Robina Corporation and Wellington Flour Mills.