MILK POWDER COMPANIES GIVE ULTIMATUM TO GOVT

Companies importing milk powder has informed the Government that unless they are allowed to increase prices in keeping with international market trends, they would be forced to stop imports altogether. A metric ton of milk powder which was $ 2400 in the world market has shot up to $ 3400.

However, citing election gimmicks, the Government has prevented such an increase – the companies have asked that the 400g pack of milk powder to be increased by Rs 35.00.

At the parliamentary session held in November, Minister Ranjith Siyambalapitiya admitted that the price of milk powder has increased due to the heavy tax burden placed on it by the Government. In response to a question raised by JVP MP Manage concerning the price and import of milk powder, Minister Siyambalapitiya responded that the milk powder is imported into Sri Lanka at a cost of Rs 257 per kilo and that the Government adds a tax component of Rs 145 to this. He added that milk powder sells in the market for about Rs 530-585 per kilo.

JVP MP Anura Dissanayake queried from the Minister about the added Rs 128 between the price of Rs 402 ( Rs 257+ taxes Rs 145 = Rs 402) and the market price of Rs 530-585. But the Minister could not respond and tried to evade the question ; his only response was that the tax of Rs 145 is added to encourage the local dairy farmer but he did not answer as to  where the Rs 128 was going.