Milk powder to go up to Rs 260?

By Saliya Kumara Gunasekara

Milk powder companies warn that they will have to stop importing milk powder, unless the government permits the increase of prices of their products.
They point out that the price of a metric ton of milk powder in the world market, which was $ 2400 last year has increased to $ 3400.
These companies have requested the government to grant them permission to increase the price of a 400 gram packet of milk powder by Rs 35. If the government permits milk powder companies to raise prices, the price of a 400 gram sachet of milk powder will increase to Rs 260.
“The price of milk powder in the world market began increasing from December last year. We continually made written requests to the Customer Services Authority asking for permission to increase milk powder prices, but we haven’t received a positive response as yet. Meanwhile, a tax levy of Rs 100 is imposed for each kilogram of milk that is imported. We are carrying on our businesses in the face of heavy losses. Another relevant issue is the shortage of milk powder in the world market.
If we are not given permission to go ahead with a price revision, we will quit importing milk powder,” said a representative of a milk powder producing company.
Meanwhile, Minister of Trade and Consumer Affairs, Bandula Gunawardana, said, “two earlier requests made by these companies to increase prices were rejected.
Now they say that they would not be able to stay in business much longer because they were facing heavy losses and have threatened to quit importing powdered milk.’’
Meanwhile, the cost of living and food conservation cabinet sub committee will meet next week to discuss the matter, he said.