Milk powder importers suspend port clearance of stocks
View(s):Several leading Sri Lankan milk powder companies have suspended clearing their stocks from the port after discussions this week on prices held with the Consumer Affairs Authority (CAA) and the Treasury ended in a deadlock.
Milk powder companies cannot continue to run their business as the authority is resorting to delaying tactics rather than solving the problem promptly and they are left with no choice but to stop imports, placing new orders and also stop selling existing stocks of whole milk powder, importers warned.
There could be a milk powder shortage in the country within a couple of weeks if the government does not allow companies to increase the price of a milk powder packet, several milk powder company heads told the Business Times.
Milk powder companies are incurring a loss of Rs. 30 to 40 million per month and are now compelled to close down their operations if the government fails to grants them permission to increase milk powder prices by Rs. 100, they said.
Along with the devaluation of the rupee and the increase in total taxes including the Rs.15 as duty, 15 per cent VAT, 7.5 per cent PAL and 2 per cent NBT to Rs. 170 from Rs. 135 per kg, the import cost of milk powder has been increased, they pointed out. In addition the world market price of milk powder is now at a high level.
(BS)