Minister wants CAA to submit report on world milk powder prices

Irangika Range

Co-operatives and Internal Trade Minster Johnston Fernando has instructed the Consumer Affairs Authority (CAA) to submit report on the fluctuation of milk powder prices in the world market.

'The Price Evaluation Committee is currently studying the fluctuation of milk powder prices in the world market and a final decision whether to allow a milk powder price revision will be taken only after a careful evaluation of the situation, a CAA spokesman said.

He further said that the government would not allow a price hike unless there was a genuine case for one.

“We cannot make a sudden decision of this magnitude based on the world prices or the rupee deflation.

“We have to go through the stocks and decide. We are studying it and won’t rush into such a situation. We have to see the quantity of milk powder stocks imported to the country, available stocks in the country and when these stocks were bought by milk power importers.

'At the end of the day we have to look in to the interests of the consumer,” he said.

“Just because the companies want to increase the prices, we cannot allow them to do so.

"We need to look in the interests of the consumers and companies,” he said.

"The milk powder importers have already made an application to the CAA for a price hike due to milk powder price increases in the world market.

"The CAA Price Evaluation committee conducts extensive discussions with milk powder companies concerning the technical and practical impacts to decide on any price revision if and when needed.

"The price has to be revised according to the fluctuations in milk powder prices in the world market.

“As a responsible government, we are always committed to providing relief to consumers.” he added.