Price control only possible

Under ‘state of calamity’

TAGBILARAN CITY, Bohol, (PIA)— Until and unless there is a declaration of a state of calamity blanketed over a place, the Department of Trade and Industry (DTI) can not impose price control especially a price freeze.

And that price freeze which is good for 60 days, only applies to basic commodities which are manufactured, according to DTI Trade and Industry Development Specialist Many Lou Torreon.

Speaking at the Kapihan sa PIA to commemorate the Consumer’s Welfare Month, the DTI through Torreon clarified that price controls can only happen if the president, or the local chief executive declares a state of calamity, emergency, crisis or when a standard of living is threatened.

For that, for DTI and their monitored goods which are the prime and basic necessities, prices of manufactured goods and products would be nailed based on their last price monitoring before the declaration, she explained.

Over the government price monitoring operations, consumers have accused that this is a waste of time, because they alleged that prices remain high.

But Torreon also clarified that those products that are placed under price freeze are those that have Suggested Retail Prices (SRP).

An SRP is the price that a product's manufacturer recommends to a retailer as its selling price; the manufacturer himself knows the costs of production plus an incorporated profit margin suggests it and the DTI approves such before it can be implemented.

Products that do not have an SRP are not covered by the price freeze when that happens, she said.

The DTI, which is often blamed for failure of government to put up price control mechanisms, however clarified that their monitoring activities can be helpful as it determines exactly the prices of basic commodities prior to the declaration.

As a key provision of the Price Act (or Republic Act 7581), the government shall ensure that basic necessities and prime commodities are available at reasonable prices at all times.

Section 3 paragraph 3 of the same law lists the following implementing agencies of the Government which has jurisdiction over a basic necessity or prime commodity: The Department of Agriculture, for agricultural crops, fish and other marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other farm inputs; the Department of Health, for drugs; the Department of Environment and Natural Resources, for wood and other forest products, and the DTI for all other basic necessities and prime commodities.

And while basic necessities Includes rice, corn, bread, fish, meat, eggs, milk, vegetables, coffee, sugar, cooking oil, and essential drugs and prime commodities like fresh fruits, flour, processed meat, noodles, and onions, the DTI can only act on manufactured basic commodities with SRPs like canned sardines, processed meat, bread, processed milk, processed coffee, sugar, cooking oil and flour, according to Torreon.

This also puts up the monitoring and regulations to the Department of Agriculture on agricultural products like rice, eggs, fresh fish, fisheries, fresh meat products, poultry, dressed chicken, vegetable and spices.

With the regulatory agencies and departments, the Provincial Price Coordinating Council which Governor Erico Aristotle Aumentado called last week has decided for the posting of a weekly price bulletin, to allow consumers to compare the prices and choose which towns sell the prime commodities the lowest.

Since then, local price bulletins are regularly posted on the Provincial Government of Bohol FB page, Torreon said. (PIAbohol)

STATE OF CALAMITY. Only in areas declared under the state of calamity and emergency, or crisis can the DTI impose a price freeze, which puts a price cap on the cost of basic commodities for 60 days, explains DTI trade and industry development specialist Mary Lou Torreon over at Kapihan sa PIA. (PIABohol)