CAA tuns down milk powder price hike request by MIA

MIA, Committee Member Lakshman Weerasuriya said as a result of this situation some importers had to control their imports and as a result there is a severe shortage of milk powder in the market today.

He said his Association brought this matter to the attention of Trade Minister Bandula Gunawardana about four times from January this year.

“As there was no positive response, the milk powder importers had to abandon their repeated requests and the situation has badly affected consumers,” he said.

Gunawardane said a kilo of milk powder cost Rs. 4.20 US dollars and accordingly importers have to face a severe loss of Rs. 1,500 million every month and by selling one kilo of milk powder according to the Government controlled price importers incur a loss of Rs. 270 a kilo. It is reported that Sri Lanka’s monthly milk powder consumption is between 6,500 to 7,000 metric tonnes and accordingly the country’s daily consumption is 250 metric tonnes.

Meanwhile, the Government spend US Dollars 360 million every year to import milk powder. He said this situation also affected them when making monthly salaries of their workers and having to obtain bank loans to pay the salaries.

Meanwhile Gunawardana said the milk powder importers should know the current situation in the country and the Government has not decided to increase the price of milk powder.