Following discussions with Finance Minister Basil Rajapaksa yesterday, it has come to a conclusion with the milk powder importers to increase the price of 1 kg of imported milk power by Rs.200.
The related discussion was held with the Minister yesterday at the Ministry following several requests by the importers.
During the discussion, the importers have made a request to increase the price of 1 kg of milk powder by Rs.350.
Anyhow, the final decision in this will be taken after the meeting with the Cost of Living Committee next week.
However, the importers agreed to increase the milk powder prices by Rs.200 following a lengthy discussion with the Minister to coincide with the current world and local market situation and import taxes.
As the global market prices and the shipping costs have increased and due to the depreciation of the Sri Lankan Rupee (LKR) against the US dollar, milk powder importers have repeatedly requested for a price revision. However, no permission was granted to do so.
Later, considering the financial losses incurred to the importers, they have decided to suspend their imports.
The monthly milk power consumption is between 6,000 and 7,000 MT and daily consumption is around 200 MT.
The current price of 1 kg of milk powder is Rs.945 and a 400g pouch is sold at Rs.380.
If the price increase comes to effect, the new price of 1 kg of milk powder would be Rs. 1,145, and the 400g pouch would be sold at Rs.580. (Daily Mirror)