Milk powder prices rise

Tuesday, 3 May 2011 00:06 - - {{hitsCtrl.values.hits}}

By Shezna Shums

The price of imported milk powder has been increased from midnight yesterday (2 May), with the price of a 400 g packet being increased by Rs. 20 and a one kilo packet being increased by Rs. 49, the Ministry of Internal Trade and Cooperatives said.

All the leading companies importing powderd milk had made this request from the Consumer Affairs Authority last week and discussions were held yesterday in this regard.

Last week all leading milk powder importing companies had demanded that the Government allow an increase in the price of milk powder, noting that in the event a price hike was not permitted, there would be a shortage of milk powder in the market as orders would not be placed by the companies. The demand for a hike in milk powder price comes in view of an increase in the global milk powder price, while local prices have remained the same.

Currently one metric tonne of milk powder costs US$ 4,430, up from US$ 3,200. In June last year the CAA had authorised the price of milk powder to be increased to Rs. 248 owing to the increasing global price of powdered milk. Due to the price hike, some companies had to halt milk powder imports.

Another factor leading to the huge demand for imported powdered milk is that cows in the country do not produce adequate amounts of milk. Sri Lanka consumes about 5,600 metric tonnes of milk powder per month.

According to the Ministry of Livestock and Rural Community Development, statistics of fresh milk available locally during 2010 show that cows’ milk amounted to 191.92 million litres and buffalo milk amounted to 55.63 million litres – totalling to 247.50 million litres of fresh milk.

Following the rains and floods during the early part of the year, livestock too had been affected and according to the information gathered by the Ministry of Livestock and Rural Community Development, Rs. 995.66 million worth of livestock had perished, which included cattle, buffalos, goats, poultry and swine.