Price of milk powder likely to rise

18 February 2012 12:26 am - 16 - {{hitsCtrl.values.hits}}

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In the wake of the huge increase in fuel prices and electricity bills, people are likely to be burdened further if the government approves a request from milk powder companies to increase the price of a 400 gram packet of milk powder by Rs.15.

The Consumers Affairs Authority said yesterday the distributors of brands such as Anchor, Nespray, Maliban and Diamond have citied the high cost of importing, manufacturing and distributing milk powder as a reason for their request.

The companies have warned that their industries would be jeopardized unless an upward revision of prices was allowed without delay and have sought an appointment with Internal Trade Minister Johnston Fernando to discuss the crisis situation.

Company officials said the devaluation of the rupee by three per cent in the 2012 Budget, had a negative impact on milk powder importers, and the situation took a turn for the worse with the rupee depreciating to about Rs.120 against the dollar.

“We have to pay at the latest exchange rates when clearing shipments. It is a cost factor. Our distributors and agents are demanding a price increase because of the rise in fuel prices. The transport cost is the most serious cost factor at the moment,” a leading milk powder importer said and added that the fuel adjustment charge would also add to the production cost.

“Given these reasons, we asked for a price revision. We sent a letter to the Consumer Affairs Authority a few days ago in this regard. We are waiting for the reply,” the importer said.

In Sri Lanka, only 20 to 50 per cent of country’s milk requirement is produced locally. The rest is imported mainly from New Zealand.

Meanwhile the milk powder companies had brought to the Minister’s notice that the global milk powder prices had not decreased but remained at US$3,900 for a tonne of milk powder.

However, Consumer Affairs Authority (CAA) Chairman Rumy Marzook said the price evaluation committee has not met yet to decide on these matters. (Kelum Bandara)

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Comments - 16

C.K. Lankaputhra Saturday, 18 February 2012 01:54 AM

Why only milk powder. Prices will increase from Match box to Coffin, Pin to bomb. Deepest sympathies to people of SL.

clive Saturday, 18 February 2012 03:42 AM

Obvious no? ........................................nothing will be reduced during this period. Don't worry we won the match yesterday.

Calistus Jayatilleke Saturday, 18 February 2012 03:52 AM

There is an old Sinhala saying that one needs to cry for milk to be flowed from the mother's breasts; but in the present context if people cry for milk at rasonable price, then what they get are gun shots and tear gas!

fazli Saturday, 18 February 2012 03:48 AM

Oh ... another good news. An average Sri Lankan lives below poverty level. Keep it UP !

Kangarro Saturday, 18 February 2012 04:18 AM

Thank you .......................I'm so happy to hear this coz my pocket is empty

Peraira Saturday, 18 February 2012 04:40 AM

1st Fuel Prices
2nd Bus Fare
3rd Electricity
4th Bakery Product
5th Milk Powder
6th ???????? Gas??????

Nodrog Saturday, 18 February 2012 05:11 AM

Well it's the babies turn to feel the pinch. Look forward to a new generation of under-nourished children

Luck Saturday, 18 February 2012 05:34 AM

If we continue at this rate, by 2020 Sri Lanka will be worse than Sudan......

Nodrog Saturday, 18 February 2012 07:29 AM

Everyday we hear of something or the other going up in price. But when prices drop not a sound is made and we never get to enjoy the benefits of it.

concerned Saturday, 18 February 2012 09:16 AM

Prices once increased never go down, at this rate another year and we will be Sudan.....

Szozs Saturday, 18 February 2012 10:56 AM

Wheat flour is next.

Raja Saturday, 18 February 2012 12:56 PM

SriLanka is going to be the real wonder of Asia very soon

Tom Saturday, 18 February 2012 04:05 PM

this government is treating their level best to the people who have voted them.. wel done keep it up

Nagaragiri Kiththil Saturday, 18 February 2012 04:41 PM

I am so happy, Poonac prices have not gone up !!!!

Nagaragiri Kiththil Saturday, 18 February 2012 04:43 PM

No bread ,EAT cake No milk DRINK ,rubber kiri.

xlntgson Sunday, 19 February 2012 02:32 AM

WB, IMF or any financial institution advocating $ economy should answer the above questions/doubts, sudden price rise without a raise in income collapses any economy however strong its fundamental is!

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Price of milk powder likely to rise

Comments - 16

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