May 05, Colombo: Cooperatives and Internal Trade Minister Johnston Fernando has justified the Sri Lankan government’s decision to increase the prices of milk powder saying the move has averted a threat of a possible milk powder shortage.
Fernando has said that while the milk powder companies had requested for a price hike for a long time, the government had granted permission to increase only part of the amount requested.
He has added that the country would have been faced with a milk powder shortage had the government not permitted a price hike.
Fernando has observed that the price increase was granted after the Ministry and Consumer Affairs Authority (CAA) had closely analyzed the rising price of milk powder in the global market.
The Authority permitted the increase of a 400g milk powder packet by Rs. 20 and a 1kg packet by Rs. 49.
The countrys annual demand for milk powder amounts to 65,000 metric tons while the country produces only 8000 metric tons, he has said.