Bandula to meet Treasury on milk powder crisis

Irangika Range

COLOMBO: The Trade, Marketing Development, Co-operative and Consumer Service Minister Bandula Gunawardena will meet Treasury officials to discuss the milk powder crisis.

The Minister told the Daily News that milk powder importers have requested an increase in the price of a 400g of milk pack up to Rs. 270.

"We don't agree to this increase but we are looking at the possibilities of providing relief to milk powder importers through methodologies acceptable to both parties," he said.

The Minister said there was almost a daily increase in milk powder prices in the world market due to a crisis in the global milk powder industry and importers face a great difficulty in providing milk powder at low prices due to this.

He said Maliban and Kotmale have suspended their imports. "Though they asked to increase the price of a 400g of milk pack upto Rs. 240 in August, we have permitted only a Rs. 15 increase on each pack."

"Therefore a packet of milk powder will be priced at Rs. 195 which was earlier Rs. 180." Though there is a milk powder price hike in the world market, the Government has provided a Highland Milk Powder pack at Rs. 160 incurring a loss for each pack.

Even amidst constraints, the Government provides a special welfare milk powder package at a concessionary rate of Rs. 152 through Sathosa branches and Cooperative shops islandwide to grant relief to consumers.

He said the country spends nearly US $ 12,500 million yearly to import milk powder. It is a huge waste of money and the Government expects to change this by creating a high demand for local fresh milk.