Up goes milk powder price

By Sumaiya Rizvi and Thushani Jayawardane

The price of a 400 gram packet of imported milk powder will increase by Rs.15 from today due to the price increase in the world market, Trade Minister Bandula Gunawardane said yesterday. “The price of imported milk powder will go up by Rs.15 for a 400 gram packet and the price of Highland milk powder of the same weight will increase by Rs.20,” he said.
The producer of local Highland milk requested permission to increase the existing price of Rs.140 three months ago, Ministry Secretary Dr. R.M.K. Ratnayake said.
“We allowed an increase by Rs.20, but the same price for sometime was maintained until it was decided to increase it to Rs.160 from today,” he said. Minister Gunawardane said private milk powder importers asked for an increase of Rs.60, but he allowed only an increase of Rs.15. The price of a metric tonne of milk powder in the world market has increased up to US$5000 compared to US$2200 a few years ago, he said.
“If anywhere in the world, the prices are lower than the prices at which we buy, we welcome that information. We will buy from them,” the minister said.
According to Dr. Ratnayake a milch cow in Sri Lanka produces 2.5 litres of milk per day, whereas a cow in milk powder producing countries produces 36 to 40 litres per day, he said. He also said local milk powder importers like Maliban, Kotmale and Milgro halted their distribution due to the escalating prices of milk powder in the world market.
“We have unified the taxes on most essential goods, so their prices in the market should go down,” Dr. Ratnayake said. He said the Government would lose one billion rupees a month due to the unification of taxes.
“We want the public to reap the maximum benefit of this relief,” Dr. Ratnayake said.
He said private vendors should reduce the prices of essential goods to the same level as at SATHOSA.
“We expect the public to demand these goods at the revised prices from the groceries and shops they patronise,” he added.