Big bakers have promised no price increase on Pinoy Pandesal and Pinoy Tasty until next month despite rising prices and tightness in the supply of flour.
They have also asked millers to ramp up production of Harinang Pinoy so members can continue making this affordable breads
Johnlu Koa, president of the Philippine Baking Industry Group (Philbaking) said they will make an announcement before the end of November if they can hold on to their prices until Noche Buena.
Koa said there is a mechanism followed by the Department of Trade and Industry (DTI) where every P50 increase in prices of flour is equivalent to a P1-increase in Pinoy Tasty.
While they vowed to continue subsidizing Pinoy Tasty and Pinoy Pandesal, PhilBaking has asked millers to ramp production of Harinang Pinoy specially formulated for these basic bread products, priced P30 to P50 cheaper than regular flour.
Pinoy Tasty has cornered 16 to 20 percent market share as consumers tend to purchase low-priced products during the pandemic.
Pinoy Tasty is sold at P35 per 450-gram pack while Pinoy Pandesal is sold at P21.50 per 250-gram bag of 10 pieces.
According to Koa, economies globally have been stockpiling on wheat that has pushed prices up by 10 percent to P760 per 25-kilogram sack from P690 a year ago.
Industry projects prices to gradually go up by P30 to P50 to reach a peak of P940 to P970 per bag.
Current prices reflect wheat purchases from two to three months ago.
Koa said prices have also been influenced by supply disruption because tankers that contain wheat flour are not able to move due to lockdowns.
Weather conditions in wheat growing countries like the US also affect supply.
