Prices of milk powder, LP gas revised

Irangika RANGE

The government has decided to revise the prices of LP Gas and imported milk powder, with effect from midnight yesterday.

The price of a 12.5 Kg domestic LP gas cylinder, both Litro and Laugfs, will be increased by Rs. 350, while the price of a 400 gram packet of milk powder and a one kilo packet have been increased by Rs. 61 and Rs.163 respectively.

Addressing a media briefing held in Colombo yesterday, Co-operatives and Internal Trade Minister Johnston Fernando, said that a tax imposed on imported milk had been increased, except infant milk powder.

This decision was taken in view of discouraging the import of milk and as a measure to promote the local milk industry.

He said that a metric ton of LP gas has increased by US $ 1195 in the international market during February and March, causing

difficulties to gas companies selling domestic cylinders at the same price.

Even though, the gas companies requested for an increase of Rs. 907 for a 12.5 kg domestic LP gas cylinder, the Consumer Affairs Authority was not prepared to increase as they wanted as the people should not be further burdened.

The price of gas was increased according to the gas price formula agreed upon by the gas companies with the CAA. "We will reduce the prices of gas, if the gas prices in the international market will go down," he said. The minister said that Sri Lanka spends around US$ 400 million per annum to import milk powder to the country, losing valuable foreign reserves.

"We should cut down the annual milk powder import bill by increasing the local fresh milk production.The purchasing price of a locally produced litre of fresh milk has been increased to Rs. 50 from Rs. 31 under the instruction of President Mahinda Rajapaksa."

He said, by cutting down on the import bill of milk powder, the country can divert those money to carry out development activities.

He said promoting the consumption of fresh milk among the masses will help make Sri Lanka self sufficient in milk. Therefore, plans are afoot to set up several factories producing milk powder by using the fresh milk farmers produce while streamlining the distribution of fresh milk of local farmers in the local market.

"We believe the move will help lift the economic status of the local dairy farmers," he added.

According to the price revision, the new price of 12.5 kg both Laugfs and Litro domestic gas cylinders will be Rs. 2,396, while the prices of one kilo of milk powder and 400g milk powder packets will be Rs. 810 and Rs.325.