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| Sunday, 27 February 2005 |
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| News Business Features Editorial
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No to price increase in milkfood The Consumer Affairs Authority (CAA) has rejected requests by milk food importing companies to increase the price of powdered milk food. The companies had made applications asking permission to increase the price of milk food as the price of a metric ton of milk food has increased from US$1600 to 2300. According to CAA authorities the companies were earlier able to increase the price of milkfoods if there was no response after one month from the day of making a request. But now the time frame has been increased to three months because one month was not sufficient to study the situation. According to private companies this is creating a problem because the importation costs have gone up and they are not in a position to increase the prices. This has resulted in a reduction of imports by as much as 50 percent. There might be a shortage of milk powder including the infant milk powder in the coming weeks, said a company spokesman. The importers of Anchor milk powder New Zealand Milk have filed action against the CAA. The court case will be taken up tomorrow. According to sources companies are incurring a loss of Rs 800,000 a day. Meanwhile, the Ministry of Trade, Commerce and Consumer Affairs is planning to import milkfood from another country if the companies are going to increase the prices on their own. (SG) |
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