4 May 2018 09:46 am
It said the decision was taken after the Cost of Living Committee recommended to the Consumer Affairs Authority (CAA) the price increase on a 400 gram packet of full cream milk powder by Rs.20 and a kilo by Rs.50.
The price increase will apply to full cream milk powder manufactured locally and internationally.
Milk powder importers had recently requested for an increase of Rs.100 on a kilo of imported milk powder to off set importer costs.
However, the proposal was rejected by the CAA and the Cost of Living Committee on the basis that the move was badly timed.
Importers had then requested a price increase of Rs.75 but that was turned down.
Milk powder importers claimed that the cost of one metric ton of milk powder in the world market was between US$3,250 and US$3,350 and could fluctuate between US$3,400 and US$3,500 by June.
It was against this backdrop, that the importers had requested for a price increase from the Consumer Affairs Authority (CAA) and the Cost of Living Committee. Importers have informed the Prime Minister on the possibility milk powder imports coming to a standstill.
The importers said milk powder stocks in the local market were sufficient only for the next two or three weeks. (Chaturanga Samarawickrama)
Video by Susantha