The Cabinet Sub-Committee on Cost of Living has recommended the Consumer Affairs Authority to allow milk powder importers to increase their retail price after repeated requests from the companies citing rising world prices amidst mounting losses.
“These companies have been requesting us to permit them to increase the retail price for a while now.
“ In order to ensure that consumers are not affected, we have exempted infant formula,” Industry and Commerce Minister Rishard Bathiudeen said.
“This price hike will only be applicable to milk powder manufactured or imported after May 5,” he said.
The price of a kilo of milk powder was increased by Rs.50 while a 400g pack was increased by Rs.20. A 1kg packet of full cream milk powder which was sold at Rs.810 will now be sold at Rs.860.
The Ministry also confirmed that the price hike is only applicable to full cream milk powder and not other types such as infant formula or non-fat milk.
Clarifying futher, a communiqué from the Ministry cited that the Maximum Retail price of other different weighted milk powder packs would be increased pro rata (proportionally) based on these rates.
Minister Bathiudeen who is also a member of the Cabinet Sub-Committee said that the companies had requested for a bigger price hike than what the committee had approved.
The recent history of allowing MRPs of one Kg of milk powder has been Rs 810 (May 2012 onwards), Rs 962 (from Feb-2014), Rs 810 (from Feb-2015), Rs 810 (from March-2015), Rs 810 (from July 2016), and Rs 860 (latest revision of May 4, 2018).
The allowed MRP of 400 Gram milk powder packs has been Rs 325 (2012 May onwards), Rs 386 (from Feb-2014), Rs 325 (from Feb-2015), Rs 325 (from March-2015), Rs 325 (from July 2016), and Rs 345 (latest revision of May 4, 2018).