Tag: pricing policy

  • Thailand Rejects 5 to 10 per Cent Consumer Goods Price Hikes for October

    Thailand Rejects 5 to 10 per Cent Consumer Goods Price Hikes for October

    Thailand’s Department of Internal Trade has rejected manufacturer requests for 5 to 10 per cent price increases on essential consumer goods scheduled for October 1. Director-general Wittayakorn Maneenetr confirmed on September 24 that the agency refused to authorise the proposed increases across packaged groceries and household staples.

    Field inspections and supplier audits across major consumer goods manufacturers showed no formal approvals for pending price increases, according to the regulator. The department maintains active surveillance over 16 core consumer products, while the Central Committee on Prices of Goods and Services enforces statutory price caps across 59 controlled categories. These categories include meat, eggs, milk powder, tinned fish, seasonings, soap, shampoo, and washing powder.

    Promotions Rolled Back and Ceilings Tested

    Price increases felt by consumers in recent weeks stem from retailers pulling back promotional discounts rather than statutory ceiling adjustments. Brands have withdrawn multibuy promotions, including buy-one-get-one-free and buy-three-get-one-free deals, which returns shelf prices to their standard retail baseline without altering registered price caps.

    Manufacturers have also adjusted wholesale rates within previously approved statutory bands. A product with a 60 baht ceiling previously selling at 50 baht can shift to 52 or 55 baht without requiring fresh regulatory approval, though suppliers must still notify the department. Department officials stated that competitive pressures continue to discipline store shelves, as brands cutting promotions too aggressively risk ceding volume to discounting rivals.

    Input Pressures on FMCG Brands and Foodservice

    For fast-moving consumer goods suppliers, the refusal locks margins against persistent transport, packaging, and raw material cost inflation. Suppliers unable to lift base prices must either absorb higher overheads or rely on packaging redesigns to defend unit economics across modern trade channels. Retailers face thinner promotional support from suppliers, forcing grocers to balance footfall targets against lower co-marketing allowances.

    The margin squeeze extends directly into the foodservice sector. Sorathep Rojpotjanaruch, president of the Restaurant Business Club, projected selective 5 to 10 per cent menu price increases during the fourth quarter of 2026. Restaurants face steep seafood procurement costs driven by high fuel expenses alongside seasonal vegetable price spikes during the October and November rainy period.

    A Pattern of Incremental Surcharges

    Upward pricing pressure on Thai grocery shelves began building in April 2026 as manufacturers flagged higher energy, transport, and raw material outlays. Secondary price adjustments followed at mid-year, culminating in another round of supplier requests in mid-September.

    Field surveys recorded shelf price shifts across seasonings and staples, with monosodium glutamate rising by 5 to 10 baht per pack and 500-gram grain packets adding 10 baht. Wholesale chicken tenderloin moved from 100 to 105 baht per kilogram, while pork belly traded at 182.50 baht per kilogram and standard table eggs sold between 4.35 and 5.19 baht each.

    The Department of Internal Trade is now preparing joint retail discount programmes under the government’s Thais Help Thais scheme to curb fourth-quarter household living costs.

  • Philippine DOJ Calls for Review of Suggested Retail Price in 23-Page Study

    Philippine DOJ Calls for Review of Suggested Retail Price in 23-Page Study

    The Department of Justice has called on government agencies to review the policy of imposing a Suggested Retail Price, warning that the practice restricts competition and amounts to undue market interference.

    In a 23-page report issued on July 12, the DOJ-Office for Competition found that the government lacks adequate rules or guidelines to govern the imposition of retail price recommendations.

    Justice Assistant Secretary Gerenomi Sy, who heads the office, noted that price controls should be enforced only during emergency situations rather than applied broadly across everyday consumer goods.

    Regulatory Pressure on Small Stores

    Enforcement practices by trade and agriculture departments turn advisory figures into de facto rules. The Department of Trade and Industry requires retailers to provide 30 days of advance notice before raising prices. It also issues formal notices to explain to businesses exceeding recommended levels.

    Agriculture officials have threatened producers, distributors, and neighborhood sari-sari store owners with profiteering charges if they sell above suggested thresholds. The report found that these threats prevent micro-retailers from setting realistic margins. As a result, small store owners cannot cover their actual procurement and transport costs.

    Inefficiencies and Supply Shortages

    Mandatory price ceilings suppress natural supply-demand adjustments for supermarket chains, distributors, and consumer goods suppliers. When government caps keep prices below market clearing rates, suppliers cut production. Store owners face margin compression, while incentives to hoard inventory increase.

    Barriers for prospective market entrants also rise under the policy. New consumer brands and retail operators avoid entering segments where margin limits are dictated by administrative decree rather than operational efficiency. That dynamic cements the dominance of entrenched players.

    Pending Competition Legislation

    Price controls have also failed to break existing distribution cartels in staple agricultural markets. Justice Secretary Leila de Lima stated that the department maintains active legal cases against entrenched cartels in rice, garlic, and onions. Standard price ceilings never deterred those groups.

    President Benigno Aquino III will soon act on the issue when he receives the Philippine Competition Act. The legislation will establish a dedicated regulatory framework to penalise market cartels and pricing abuses.