DTI scraps price approval for prime commodities

The Department of Trade and Industry (DTI) will no longer approve adjustments to suggested retail price (SRP) of prime and basic commodities and will give manufacturers a free hand in setting prices, Trade Secretary Ramon Lopez said on Wednesday.

"DTI's proposal, which was carried by the group, is that we should no longer have prior approval for SRP setting. We leave it to the companies," Lopez told reporters in a press conference after the National Price Coordinating Council (NPCC) meeting in Makati City.

"We will simplify and remove the bureaucratic red tape that requires prior approval," the Trade chief said.

TDTI has come up with resolution on the matter after the NPCC meeting. "Everybody concurred with our plan. The resolution, that's effective as soon as possible," he said.

The basis for removing the system of required DTI approval for increasing SRPs is that basic commodities have many market players and there is strict competition that sets a "natural mechanism" that tempers price increases, the Cabinet official noted.

"Takot sila mag-increase ng presyo, kasi ayaw nila mawala 'yung kanilang market share," Lopez said.

"You know what? The major findings there, even 'yung not covered by SRP, or hindi na kailangan ng i-approve ng DTI, is still stable. Hindi magbabago ang presyo in one year," he added.

Despite removing the system, the Trade chief assured consumers that the department will continue to closely monitor price movements.

"Again the SRP is still there, pero 'di na si DTI mag-a-approve. Ang mangyayari kumpanya na ang mag-de-determine," he said.

Lopez emphasized the competition among players in basic and prime commodities market proves that the "bureaucratic red tape" of SRP approval system is irrelevant. — VDS, GMA News