The prices of locally manufactured Highland and Pelawatta milk powder brands will not be increased although the local milk powder importers made a sudden price hike of their products, sources said.
Milco, Chairman Lasantha Wickramasinghe said at this crucial juncture when consumers were facing severe hardships due to the sudden price hike announcement made by milk powder importers, the Milco management had taken a firm decision not to increase the prices of Highland and brands. He however said the imported Milk Powder Association was compelled to increase their brands considering the price increase of milk powder in the world market.
“Milco is a State-owned institution and it has no intention to increase the prices of these two popular brands although the production cost of both milk powder and liquid milk have gone up considerably,” he said.
The chairman said however Milco has not stopped any concessions currently given to liquid milk producers countrywide to encourage farmers to continue with their productions uninterruptedly. Responding to a question on the scarcity of Highland milk powder shortage in the market at present, Wickramasinghe said it was a temporary shortage since most consumers are in the habit of purchasing large stocks and such a situation will generally create a shortage in the market. According to the price increase, imported one-kilo milk powder has gone up from Rs. 1,195 to Rs. 1,345 and a 400-gram packet has gone up from Rs. 380 to Rs. 540.
Meanwhile, State Minister D.B. Herath said due to the high production costs of locally manufactured liquid milk and also to encourage local farmers who are engaged in milk production industry the prices of locally manufactured milk too will have to be increased even by a short margin in due course.