Importers plan to stop milk powder imports as prices rise in world market 

Milk powder companies have stopped importing milk powder stocks since they have not been given permission to increase milk powder prices, a local media report said citing sources at the milk powder companies.

The sources say that since the new orders for milk powder have been stopped from the last week, there is a possibility of a shortage of milk powder in the market at the end of this month.

The companies say they face difficulties and problems to provide milk powder at the government stipulated prices because of the price increase in world market and the appreciation of the dollar.

As such the companies have requested permission to from the Cost of Living Committee and the Consumer Affairs Authority (CAA) to increase the price of a kilogram of milk powder by a hundred rupees.

Milk powder companies point out that the current stocks are sufficient for next two to three weeks. The companies say they have informed the Prime Minister of their decision to stop imports of milk powder.

The importers pointing out that currently, the price of a metric ton of milk powder is USD 3250-3350 and by June it is expected to rise to $ 3400-3500, say it the government allows to increase the price at least by 75 rupees they can minimize the losses.

Source : Colombo Page