bureaucratic red tape on SRP setting
April 6, 2017
MAKATI CITY –
Department of Trade and Industry (DTI) Secretary Ramon Lopez recently
(April 5) convened the National Price Coordinating Council (NPCC) to
closely evaluate the price and supply situation of basic necessities
and prime commodities during the first quarter of this year.
During the meeting, DTI
discussed its stand to deregulate the setting of Suggested Retail
Prices (SRP) on certain commodities to reduce bureaucratic red tape in
the system, while it continues to closely monitor the movement of
prices of products and ensure fair trade in the market.
DTI clarified that there
will still be SRPs on manufactured products but it can be set by the
companies themselves for guidance of the supermarkets and consumers.
These SRPs will still be closely monitored by DTI.
“We can let the companies
set the SRPs because products with competitive market players and
several brands, both locally produced and imported, have their
‘self-correcting mechanism’ on their prices,” said Sec. Lopez.
“In fact, prices of brands
and commodities that do not pass the approval system of DTI before
remained stable and some are even declining because of competition” he
Sec. Lopez believes that
liberalizing price setting would help spur competition among
industries and would further improve their product quality.
“DTI would prioritize the
protection of the consumers by ensuring that industries have a
competitive business environment that allows entry of brands and
players in the market and give the consumers the widest range of
choice,” the trade chief said.
“We will continue to closely
monitor the prices of basic goods, and will have the oversight
function to enforce regulation of irregular price increases,” added
Sec. Lopez, ensuring commitment to consumer protection.
The NPCC will work with DTI
on analyzing the industry structure and streamlining the process of
price regulation to create a more efficient and effective system for
both manufacturers and consumers. DTI would also be working with the
Philippine Competition Commission (PCC) to continuously review the
industries' structure, and the play of competitive forces, that will
ensure optimum competition and best options for quality
products/services and affordable price points for consumers.