Gardenia said it can't reduce bread prices because "the reported decline in the prices of wheat from the world market has not been reflected in the prices of flour in the Philippines."
The firm also said competition is tougher now because some bakeries are owned by flour milling companies who may have access to cheaper flour.
"The baking industry is also faced now with increased competition with bakeries owned by flour milling companies who might have immediate access to preferential prices from their own flour mills," Gardenia said in a statement.
"There is no collusion between bakers and flour millers as mentioned in some news reports," it added.
The Department of Trade and Industry (DTI) suspected that bakers and flour millers have violated the Price Act for failing to reduce prices amid a 30 percent decline in wheat prices in the world market starting January.
DTI said the results of the investigation will be turned over to the National Bureau of Investigation.
source: www.abs-cbnnews.com
