Milk powder shortage unavoidable: Prof. Samarajiva

13 August 2013 04:00 am - 1 - {{hitsCtrl.values.hits}}

A A A

The withdrawal of imported milk powder from the market under the direction issued by the Sri Lankan authorities could trigger a milk powder shortage in the market in the short term and could also lead to the making of a milk powder black market.

According to Professor Rohan Samarajiva, there is no way local dairy producers could match this supply shortage in the short to medium term at a time when more than 65 percent of the milk powder and liquid market is dominated by the local unit of the New Zealandbased dairy giant Fonterra.

“So, if the prices are prevented from going up by the country’s consumer protection authority, we will see a huge shortage in the milk powder market in the short term.

In that case, the government will either have to resort to ration milk powder distribution or it will create a black market,” said Professor Samarajiva.

According to the Consumer Affairs Authority (CAA), all milk powder prices are controlled by the Sri Lankan government.

When queried as to what remedies available in case of a possible shortage, CAA Chairman Rumy Marzook said that it was beyond his control.

“That is something I can’t answer and I can’t do anything about. I think the local manufacturers can meet the shortfall in the demand.”

Professor Samarajiva, who is also the founding Chair of LIRNEasia, an ICT policy and regulation think tank active across 12 emerging Asian economies, said that the government’s order to withdraw products was an “overreaction”.

“Just because one agency said imported milk powder contains the toxic agricultural chemical dicyandiamide (DCD), I don’t think it was right to order withdrawal of these products,” he remarked.

Speaking further on the repercussions of the move he said the situation would also create a strong incentive to import non-prohibitive milk powder from other countries not designated as risky.

“In the longer term of course the local producers will have to ramp up the production to meet the demand. If not, we will have to find alternative suppliers,” Professor Samarajiva opined.

The government last week ordered the withdrawal of two batches of milk powder of Fonterra Brands Lanka (Pvt.) Ltd (Anchor 1+ & Anchor Full Cream Milk Powder) and one batch each of Maliban Milk Products (Pvt.) Ltd (Maliban Non-Fat Milk) and P.M. Mohamed Ali & Company (Diamond Milk Powder) when the Industrial Technology Institute (ITI) of Sri Lanka found traces of DCD, a claim which is repeatedly denied by Fonterra.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

Mr. B. Wijeyasingha Friday, 16 August 2013 09:46 PM

Just like India who imported cows of the breeds that yeild high amounts of milk which led to the "white revolution" in India where milk production soared the same should be done in Sri Lana where high quality milk production reaches levels where Sri Lanka can become an exporter of milk based products..

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Milk powder shortage unavoidable: Prof. Samarajiva

Comments - 1

Add comment

RECOMMENDED

Driving into Colombo’s money spinning car parks!

The runaway prophet?

Veil of uncertainty covering naked truth behind death of schoolgirl

Unwanted attention

Lurking predators make some temples unsafe for novice monks

Reforming abortion law in Sri Lanka

Discrepancies and doubts associated with WFP initiative

Most Viewed in News

My men were waiting for Jerome in Negombo to hammer him - Mervin Silva

Lankan passenger from Australia dies on board

Dasun Shanaka hasn’t lived up to even 1% of expectations in IPL, Virendar Sehwag says

Nathasha Edirisooriya arrested at airport over remarks on Buddhism

Did you attend Natasha’s comedy show? Police will quiz you

It was not Dinesh who caused delay for Ajahn Brahm Thera at BIA but Nimal Siripala de Silva

TODAY'S HEADLINES

Thai PM thanks SL for approving return of Thai donated elephant for treatment

Plans to locally manufacture ammo for T-56 assault rifles, 9mm pistols and LMG’s

Proposed police unit to combat groups disturbing religious harmony HRC calls for a report from IGP

X-Press Pearl ship tragedy No Case, No Money, No Compensation

MIRROR CRICKET

Zadran, Shah guide Afghanistan to win over hapless Sri Lanka

Rashid Khan travels to India for treatment on lower back injury

Dhoni doing ’well’ after knee surgery - team

Asalanka helps Sri Lanka to 268 in first ODI against Afghanistan

Dwivedi claims Dialog Sri Lanka Open Golf Championship

Zadran, Shah guide Afghanistan to win over hapless Sri Lanka

Rashid Khan travels to India for treatment on lower back injury

Dhoni doing ’well’ after knee surgery - team