Maximum retail prices for milk powder

Irangika RANGE

The Government has introduced a new price policy for milk powder stipulating the maximum retail price for a 400 gram pack at Rs.275.

A one kilo pack will be priced at Rs.687 under this agreement reached with milk powder importers yesterday.

Trade, Marketing Development, Co-operative and Consumer Service Minister Bandula Gunawardena told the media yesterday this new price policy will be implemented under Section 14 of the Consumer Affairs Authority Act. These maximum retail prices cannot be increased unfairly without the permission of the Consumer Affairs Authority.

The Minister said the Government has also introduced a special welfare milk powder pack on any milk brand at a concessionary rate of Rs.195 following the signing of an agreement with milk powder importers. The package is available at Sathosa branches and Cooperative shops islandwide.

“The Government is taking measures to stipulate maximum retail prices of other essential commodities as well,” the Minister said.

The Government expects to create a high demand for local fresh milk by giving concessions to farmers in the upcoming budget.

Farmers across the country would also gain fair prices for their milk.

The Government is preparing a proper mechanism to provide fresh milk at concessionary rates to school children.

The Cost of Living Committee headed by the Prime Minister comprising representatives from the Finance Ministry and the Trade Ministry under the directive of President Mahinda Rajapaksa has met regularly to discuss the milk powder issue.

He said that there was almost a daily increase in milk powder prices in the World Market due to a crisis in the milk powder industry and importers face a great difficulty in providing milk powder at low prices due to this reason. He said companies have incurred a loss of Rs.87 in each pack and the result was a milk powder shortage in the market.