Govt. asks for more information prior to hiking milk food prices
By Lal Gunesekera
Minister of Cooperatives and Internal Trade Johnston Fernando has directed the Chairman of the Consumer Affairs Authority (CAA) Rumy Marzook to obtain more details from milk powder importers immediately on various issues before taking a final decision on their request for a price increase.
Minister Fernando told The Island that he had requested for details such as the date on which milk powder was imported last and how much of it was remaining. He said that prices would be decided only after obtaining that report from the CAA, and the importers.
Milk powder importers said that they were suffering big losses as the cost of imports had increased considerably with the depreciation of the rupee. They had requested an increase of Rs. 15 per pack of 400 grammes.
The two LP gas companies Laugfs and Litro too have requested a price increase for their 12.5 kg cylinders with the former requesting a hike of Rs. 350 citing international LP gas prices as well as depreciation of the rupee. They too cite suffering big losses.
However, the Pricing Committee of the Ministry of Cooperatives and Internal Trade has not yet taken a decision on this matter.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=46709
Minister wants CAA to submit report on world milk powder prices
Irangika Range
Co-operatives and Internal Trade Minster Johnston Fernando has instructed the Consumer Affairs Authority (CAA) to submit report on the fluctuation of milk powder prices in the world market.
'The Price Evaluation Committee is currently studying the fluctuation of milk powder prices in the world market and a final decision whether to allow a milk powder price revision will be taken only after a careful evaluation of the situation, a CAA spokesman said.
He further said that the government would not allow a price hike unless there was a genuine case for one.
“We cannot make a sudden decision of this magnitude based on the world prices or the rupee deflation.
“We have to go through the stocks and decide. We are studying it and won’t rush into such a situation. We have to see the quantity of milk powder stocks imported to the country, available stocks in the country and when these stocks were bought by milk power importers.
'At the end of the day we have to look in to the interests of the consumer,” he said.
“Just because the companies want to increase the prices, we cannot allow them to do so.
"We need to look in the interests of the consumers and companies,” he said.
"The milk powder importers have already made an application to the CAA for a price hike due to milk powder price increases in the world market.
"The CAA Price Evaluation committee conducts extensive discussions with milk powder companies concerning the technical and practical impacts to decide on any price revision if and when needed.
"The price has to be revised according to the fluctuations in milk powder prices in the world market.
“As a responsible government, we are always committed to providing relief to consumers.” he added.
http://www.dailynews.lk/2012/03/05/news16.asp
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