Thursday, August 30, 2018

DTI, DA Vonduct Joint Monitoring of the Prices of Agricultural Products

The monitoring team observed that retailers in the said market are selling agricultural products with an average of Php 10.00 per kilogram price markup which, according to Trade Secretary Ramon M. Lopez, is still within reasonable profit margin.

However, Letters of Inquiry (LOI) were issued to two (2) retailers of chicken for selling said commodity at a higher price markup, and to one (1) fish vendor for selling milkfish above the Suggested Retail Price (SRP) set by DA.

“These letters of inquiry  (LOI) are not meant to condemn the market vendors,” said Trade Secretary Lopez, “rather, we want to trace the supply chain and see where profiteering occurs. If we can solve this, the market vendors will get their supplies at lower prices.”

In previous interviews, Lopez said that since farmgate prices of agricultural products are going down, the retail prices should soon follow.

“From farm to consumers, only a P50/kilo mark up should be placed including profit for the entire value chain so chicken should be bought by consumers only at P130/kilo when farmgate price is at P80/kilo,” explained Trade Secretary Lopez. “Price mark up of P10/kilo by vendors is okay but price that vendors buy from traders is too high at P130/kilo is too high when farmgate price is only at P80/kilo.”

The DTI and DA have met with several poultry and livestock producers associations and are now approaching traders to lower the baseline prices of agriculture products. The dialogue, together with the conduct of price monitoring activities will be used in the study of the supply and price situation in the market, from the producers’ side to the distribution chain, and to the market ports.

The trade and agriculture departments vow to regularly conduct intensified price monitoring activities all over the country to ensure the reasonable prices and adequacy of supply of basic and prime goods, especially on agricultural commodities whose prices are most volatile.

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