MANILA – A multi-layer trading scheme could be the reason behind the high prices of agricultural products, such as fish and vegetables, a Department of Trade and Industry (DTI) official said on Wednesday.
“Could be the trading scheme that has many layers,” Ruth Castelo, DTI undersecretary for consumer protection group, said during a Palace economic press briefing.
Castelo said the Balintawak market in Quezon City is where vegetables are being dropped off by big traders from different parts of Luzon, particularly Baguio.
She said another group of wholesalers will buy and sell the vegetables in the different big wet markets in Metro Manila and nearby provinces.
“Then it will be brought to the talipapa (small market). There are many layers, (and) every step that products will be transferred, there is an increase in the prices,” Castelo explained.
She said the DTI, in partnership with the Department of Agriculture (DA), has launched “suking” (customer) outlets where consumers can buy agricultural products taken at farm gate price or PHP20 lower compared to the public wet market.
The multipurpose and barangay centers of different local government units (LGUs), she added, will be used as venue for “suking” outlets.
Castelo said “suking” outlets are just some of the measures to counter the high prices of basic necessities and prime commodities (BNPCs) triggered by the unabated increase of oil in the world market.
She said the number of DTI personnel have been doubled to intensify monitoring of consumer products throughout the country.
The DTI official said coverage of the suggested retail price (SRP) has also been expanded to give the consumers more choices.
“We have also conducted special market monitoring activities on agricultural products,” she said, adding it is being done in coordination with the DA.
Castelo said the DA has agreed to issue SRP on some agricultural products, particularly rice and fish.
“If the increase in the price is unreasonable, we issue the notice of violation,” he added.
She said the DTI was able to convince the manufacturers of BNPCs to hold off price increases “at least for the next three months.”
“This became effective as of Sept. 1, 2018 when we issued the adjusted suggested retail price until Dec. 1, 2018,” she said.
Any movement of BNPCs will have to be approved by the DTI, she added.
Castelo, meanwhile, said the prices of rice is expected to drop as nearly 10 million bags of rice will flood the market in the coming months.
“We’ll flood the market. We’ll wait for the 5 million bags coming in October and then we will assess. Also, the 4.6 million sacks of rice in our inventory. We will release that first to the market. Let’s increase the supply, then we’ll see,” she said.
She said 32,000 metric tons or 640,000 sacks of rice are being consumed throughout the country every day. (Jelly Musico/PNA)
