No immediate price hike in milk powder

There will be no immediate hike in milk powder prices, said Consumer Affairs Authority (CAA) Director General J.M. A. Douglas.

He said that the CAA has not decided to approve a price increase of milk powder brands imported or manufactured locally.

The CAA has not granted an upward revision of prices though milk powder companies have sought an increase of Rs. 250 on a kilogram pack.

Milk powder prices are regulated by the CAA. Prices are revised in keeping with the pricing formula. There has been a shortage of milk powder in the country during the past few weeks causing hardship to consumers.

Consumers said that though fresh milk consumption is promoted there aren’t adequate quantities in the market.

The government promotes the consumption of fresh milk which is more nutritious and which would help save the drain of foreign exchange from the country. Milk powder prices have escalated beyond the affordability of the middle income consumer. The price of a 400g milk powder pack ranges between Rs. 325 to Rs. 390.

The CAA issued a directive recently calling on all milk powder companies to disclose the amount of stocks they have. Fonterra has disclosed their stock but we have not taken an account of the quantity, said Douglas.

Consumers were affected by the scarcity of milk powder during the festive season.

Retail traders said that they are unable to obtain adequate stocks as companies do not provide sufficient quantities. Certain companies have reduced the production of milk powder due to losses.