26 June 2021 12:00 am Views - 122
By Kelum Bandara
Two milk powder importers – Maliban and Diamond - yesterday insisted on a price hike of Rs. 350 a kilo citing a spike in the international market and the additional exchange cost triggered by the depreciation of rupee value.
Chief Executive Officer of Maliban Milk Products (Pvt.) Ltd., Lucky Weerasuriya told Daily Mirror that the present price of Rs.945 a kilo was fixed when the world market price remained at US $ 2800 for a tonne, and the exchange rate at Rs. 186.
However, he said the price of powdered milk had increased to US $ 4300 a tonne in the international market and the exchange rate to Rs.203. He said the importers had sought a price hike of Rs.350 as a result.
“We are asking for such price hike to sell a one kilogram packet at Rs. 1300. If the government reduces tariff rates such as VAT, PAL (Port and Airport Development Levy) and custom duties, we can sell at Rs.1200 a kilo,” he said.
Mohamed Fowmy, the proprietor of Diamond milk, asserted his views. He said powdered milk is imported through an open tender market.
“We cannot make spot purchases,” he said.
The two importers said the industry would sustain Rs. 2.1 million loss by selling their products at current rates. They warned of a possible shortage of milk powder unless retail prices were increased.