The Department of Trade and Industry has required bakers to justify their price increase in bread products of P2 for 600 gram loaf bread and P1 per pack of ten pandesal saying that increase should only P1.50 for loaf and 50 centavos for pandesal based on a P54 per kilo price of sugar.

DTI Undersecretary Zenaida C. Maglaya said this even as she admitted that the increase in bread prices cannot be prevented anymore because the prices of sugar have been pulling up prices of bread.

“But, based on our computation for a P54 per kilo price of sugar, this should translate only to P1.50 while only P1 increase per 600g loaf if based on a P52 per kilo sugar, and only 50 centavos for a pack of ten pandesal,” Maglaya said.

Maglaya said that the impact of the P54 per kilo sugar accounts for 14 to 15 percent of pandesal production or 4 to 5 centavos for a 20 gram pan de sal or 50 centavos for a 10 piece pack of pandesal.

The suggested retail price is P52 per kilo but the prevailing price in the market is already P54.

“They have to show us their numbers because the price increase does not approximate to the price of sugar they are getting,” said Maglaya.

Maglaya said they are making arrangements with the Sugar Regulatory Administration to grant them cheaper prices for the community bakers at P48 per kilo and if they are able to get the lower sugar prices before the price hike of bread becomes effective on Monday, February 8, they would ask the bakers not to raise prices anymore.

Anything above 50 centavo price hike for a pack of tens for pandesal should be liable for overpricing, Maglaya said.

Maglaya further stressed that prices of eggs and milk have not increased since September last year.

“Prices and supply of other commodities are stable except for toilet soaps, which increased by 4 to 5 percent because of the higher cost of soap noodles or the oil ingredient in soap making,” Maglaya said.

Softdrink companies have also sufficient inventories of sugar but Maglaya said they are not so worried about the prices of beverages because this is a very competitive market.