MANILA, Philippines — Bakers will start importing flour next month from Indonesia in light of the continuing high prices of locally milled flour, which they claimed is still being sold at P900 to P910 per 25-kilogram bag, despite claims by millers that they have reduced prices by P30 to P40 per bag.

Simplicio Umali Jr., president of Philippine Baking Industry Group (PhilBaking), told reporters after the National Price Coordinating Council (NPCC) meeting Thursday they are importing flour for Pinoy Tasty in March.

“We will start importing 5 containers a week,” said Umali, who is referring to its own requirements or for Gardenia Bakeries Philippines, the country’s largest bread company. A container is equivalent to 20,000 tons. So far, Gardenia is consuming 100 tons a day of flour. Pinoy Tasty now accounts for 10 percent of the loaf bread market and is expected to hit 20 percent.

He said they will be importing premium flour from Eastern Pearl of Indonesia, which is using US wheat. Imported premium flour is being sold for P840 per bag.

According to Umali, millers have only reduced prices by P5 to P10 per bag or to P900 to P910 per bag from P910 to P920 per bag as against the claims of the millers from the Philippine Association of Flour Millers that they have already reduced ex-mill prices by P30 to P40 per bag.

But Trade and Industry Undersecretary Zenaida C. Maglaya has confirmed that the millers have indeed submitted a letter to the DTI in January this year saying they have reduced by P30 to P40 per bag their ex-mill prices from the September 2011 level.

This should have impacted on the current prices of flour already, but based on the DTI monitoring prices have been reduced by P10 only per bag only.

To get into the bottom on flour prices, Maglaya has asked the bakers to submit their acquisition price from the millers.

In addition, Maglaya has ordered the DTI monitoring team to expand the coverage on flour to include all brands from the present selective monitoring.

“Who is really telling the truth,” he said.

A P40 reduction in the prices of flour should translate to P1 per pack of ten pieces of pandesal.

Meantime, Umali said that prices of other cost inputs like LPG, transport cost, packaging and imported milk have likewise gone up.