January 31, 2018 ( By Business Mirror )
SL Agritech Corp. (SLAC) will increase the price of its premium rice products by at least 5 percent in the second quarter, according to company Chairman and CEO Henry Lim Bon Liong.
Lim said the cost of producing paddy has gone up following the implementation of the Tax Reform for Acceleration and Inclusion law, which hiked the excise tax on fuel. He noted that the price increase might take effect in April.
“Transportation costs have increased. Maybe we will increase the price by 5 percent per kilogram [kg] across all varieties,” Lim said in an interview on the sidelines of SLAC’s news briefing last January 30.
He also revealed that rice farmers are demanding a higher price for their crop as the cost of producing paddy continues to go up.
“If we increase the price of rice, consumers will be affected but farmers will benefit also because we will buy palay at a higher price,” he said.
A letter from SLAC addressed to distributors dated January 29 indicated that the price increase of its Doña Maria and Willy Farms Premium Quality rice is “unavoidable.”
“In the effort of continuously providing the highest quality and delicious rice that you and our customers love and patronize, we wish to inform you of our impending price increase for Doña Maria and Willy Farms Premium Quality rice,” SLAC Marketing Director Tiffany Lim-Ngo said in the letter, a copy of which was obtained by the BusinessMirror.
“This price increase is brought about by the continuing rise in production costs and cumulative hike in petroleum prices coupled with weakening peso value. Thus, as much as we want to maintain our prices, this increase is unavoidable,” she added.
Documents obtained by the BusinessMirror showed that the list price of Doña Maria and Willy Farms Premium Quality rice products in Luzon would increase by at least P5 per kg.
A kilogram of Doña Maria Jasponica White Rice would go up to P105, from the current P100, while a 25-kilogram bag of Doña Maria Jasponica White Rice would rise to P1,950, from P1,850.
Also, the price of a 10-kg bag of Doña Maria Jasponica Brown Rice and Doña Maria Miponica Brown Rice would go up to P835, from P790.
A 2-kg bag of Willy Farms Sticky Jasmine Rice would increase to P180 from P171, while a P25-kg bag of Willy Farms Sticky Jasmine Rice would go up to P1,815,
As for a 2-kg bag of Willy Farms Dinorado Rice, the price would rise to P145, from P138, while a 25-kg bag would be sold at P1,490, P74 higher than its current price.