The final decision with regards to the increase in milk powder prices is set to be taken at the Cost of Living Committee set to convene on 23 September.
Despite the requests by the milk powder importers to increase the price in view of the increase in the price of milk powder in the world market, increase in shipping charges, and the appreciation of the dollar against the rupee, the Government has constantly turned down the request.
Accordingly, a decision was reached by the importers to halt the milk powder import considering the losses incurred.
This resulted in a shortage of milk powder in the market at present. In such a background, a discussion was held between the importers and the Finance Minister, where the importers informed that the price of milk powder must be increased by Rs. 350.
However, following a lengthy discussion with the Finance Minister, the importers agreed to increase the price by Rs. 200 considering the market conditions and import duties.
Accordingly, a final decision in this regard will be taken at the Cost of Living Committee meeting next Thursday. It is reported that a decision will be taken after lengthy discussions.
The monthly consumption of milk powder in the country is between 6,500 and 7,000 metric tons and the daily consumption of milk powder is 200 metric tons.