No hike in milk powder prices - Minister

Uditha Kumarasinghe Irangika Range and Sandasen Marasinghe

KOTTE: Trade and Consumer Services Minister Bandula Gunawardene told Parliament yesterday that even though the budget has increased the tax imposed on imported milk powder, the Government will not provide any room to increase milk powder prices in the local market.

According to the Minister, only a nominal tax of Rs. 5 had been imposed per kilo of imported milk powder. The tax imposed on imported milk powder had been increased by the budget.

“The country’s entire milk powder consumption is 54,000 metric tons. Of this total requirement, 7,240 metric tons are produced locally while 60,002 metric tons of milk powder are imported,” he said.

The Minister was responding to an oral question raised by UNP MP Ravi Karunanayake who required whether the milk powder prices will go up due to the increase in the nominal tax imposed on imported milk powder by the budget.