No room for raising milk powder prices - Trade Minister

Irangika Range

Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardhana assured that the Government will not permit any company to increase the price of milk powder.

“The Government has stabilised the retail price of a milk powder pack (400g) for last 10 months since November 2007 stipulating the maximum retail price at Rs.275 as a relief measures for consumers, “ the Minister told the Daily News.

He said that the Government also removed all types of taxes on the import of milk powder for providing relief to milk powder importers.

The Government has to incur a huge loss in this regard.

The final objective of this attempt is to minimise the burden on the consumer.

Though multi national companies are engaged in false propaganda aimed to putting the Government in trouble, the Government would not permit an increase in the milk powder prices.

He said that the Consumer Affairs Authority reached an agreement with milk powder importers and agreed that the maximum retail price for a 400g milk pack would be Rs.275. The Government also removed the Rs.86 tax imposed on a kilo of imported milk powder.

Considering the requests of milk powder importers and the milk powder price hike in the world market, the Government imposed only a Rs.5 tax per kilo of milk powder.

“The Government will not permit to increase the milk powder price to let any multinational company earn unnecessary profits while the Treasury has to incur a huge loss due to removal of taxes. We never dance on the tune of the Multinational companies,” he said.

In order to provide relief to consumers, Candy milk powder (400g) imported from Australia is sold at a concessionary rate of Rs.245 and available through co-operatives and Laksathosa branches.

Several other milk powder brands including Sathosa, Maliban and Lakspray milk packs (400g) are sold respectively at Rs.255, Rs.260 and Rs.275.

“If the small and medium scale milk powder importers can import and provide milk powder to the local market at concessionary rates, we will not permit any multi national company to effect an unfair price hike,” the Minister added.