Sign up | Log in



Home  >>  Daily News  >>  Philippines News  >>  Commodities  >> Philippine ministry to decide on cement price caps Friday

7 January 2010
Related Stories

January 5, 2010
Philippines: Mining projects to bank on metal price hikes

December 3, 2009
Philippine tenders push rice prices up

November 24, 2009
Philippine rice import to hit 3m tons in 2010

November 7, 2009
Philippines to import rice from Vietnam and Thailand

October 18, 2009
Philippines suggests Asean keeping rice tariff between 35-40%

August 9, 2009
Vietnam may ship 700,000mt rice to Philippines

Philippine ministry to decide on cement price caps Friday

The Department of Trade and Industry (DTI) will decide this week whether cement price controls are needed after observing cases of profiteering, Business World daily reported, quoting Secretary Peter B. Favila.

Cement manufacturers, meanwhile, bucked the plan to impose caps, saying their cooperation with the government should be enough to prevent retailers from unreasonably jacking up prices.

"By Friday, I’ll be able to make a decision on [whether to recommend] price control," Favila said in a telephone interview. "Retailers claim they acquired the cement at so much. They have up to January 7 to show evidence," Favila said.

The department warned on Monday that it might resort to dictating prices after market visits found 150 retailers selling cement way beyond the suggested retail price of 205 peso per 40-kilo bag. It said sellers may be taking advantage of consumers who need to repair storm-damaged homes.

Under the Price Act (Republic Act 7581), the President -- upon the Trade secretary’s recommendation -- may impose a price ceiling on cement if there is, among others, "prevalence or widespread acts of illegal price manipulation".

An industry group representing cement makers, meanwhile, said prices and supply were stable at their end.

"There is more than enough cement supply as evidenced by short queuing lines to pick up cement in plants ... Any significant increase in Metro Manila is done by dealers or retailers who should be charged with profiteering," Cement Manufacturers Association of the Philippines President Ernesto M. Ordoñez said in a text message yesterday.

The Trade department’s moves to charge erring retailers should be enough and resorting to price controls "are not necessary", he added. "Manufacturers are working with the Trade department to help stop overpricing and possible hoarding."

Holcim Philippines, the country’s leading manufacturer in terms of factory capacity, likewise said they should not be blamed.

"We have not changed our suggested retail price. There is normal supply and there are no lines [of delivery trucks] at the plant," Eduardo A. Sahagun, Holcim Philippines senior vice-president for sales, said in a telephone interview.

Holcim, he added, has also long offered direct selling to consumers in Metro Manila seeking to cut through dealers’ mark-ups.


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 





1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand