Minister of Cooperatives and Internal Trade Johnston Fernando has instructed the Consumer Affairs Authority (CAA) to bring in a controlled price for infant milk powder at the earliest.
The move follows milk powder importers demanding a price increase following the devaluation of the rupee. Milk food companies have threatened that they have temporarily cancelled orders on imports of milk powder for next month after the government failed to take a decision on a revision of prices of milk powder. Representatives of the milk food companies stated that stocks will be sufficient for this month. Milk food companies have stated that it bears a Rs.37 loss on a kilogramme of milk powder at the moment following increases in the international market and the depreciation of the rupee. CAA has maintained that it was not possible to revise the prices according to the demands of the milk food companies and burden the public. However the situation will be analysed thoroughly and a decision on the price revision will be taken.