Department of Trade and Industry (DTI) Secretary Jesli A. Lapus has asked local millers to reduce prices of flour to reflect the lower cost of international wheat prices and the reduction in flour tariff.

Lapus made this call after a report from the DTI price monitoring team showing that wheat prices from January 2010 to May 2010 now ranged $259 to $277 while the freight cost at $42 to $45 at a foreign exchange rate of P46.028 to P45.225. “These cost factors are nearly the same as those in 2007, wherein prices from January 2007 to September 2007 of wheat ranged from a low of $217 to $334/MT. The foreign exchange rate for the same period ranged from P45.62 to P48.91 per dollar and the freight cost ranged from $39.50 to $86.00,” Lapus said.

In addition, despite the zero (0) tariff on wheat from 2009 to 2010, there is also a big difference in the 2007 and 2010 ex-mill and monitored prices of flour.

The January 2007 to September 2007 ex-mill price ranged from P610.00 to P670.00 while the ex-mill price from January 2010 to May 2010 is P790.00 or a difference of P120.00 to P180.00 per bag of flour.

Likewise, the monitored prices from January 2007 to September 2007 ranged from P630.00 to P680.00 while the January 2010 to May 2010 monitored prices ranged from a low of P805.00 to P820.00 or a difference of P140.00 to P175.00 per bag of flour.

Given these factors, Lapus has been wary why ex-mill prices of flour are not reduced accordingly.

The DTI has sent letters to various flour millers to explain their side on why they have priced their flour unreasonably high.

Lapus has called on the flour millers to reflect the downward movement in the prices of their products to enable the bakers and manufacturers using flour to competitively price their products and offer to consumers reduced priced goods. Lapus said that the consumer is king who should be properly informed of the market.

The Trade Chief is taking the cause of the consumers for better priced products in the market.

On May 31, 2010, the DTI together with the Department of Education is launching the Integrated Consumer Education to increase the awareness and education consumer.