Local milk powder importers are shocked at and dismayed by the decision taken by the Cabinet of Ministers on Monday (27) to not proceed with the recommended price hike of Rs. 200 per kilogram (kg) of imported milk powder, The Morning Business learns.
Last Friday (24), the Cost of Living Committee finalised a price hike of Rs. 200 per kilogram of imported milk powder and recommended the same for the Cabinet of Ministers.
Speaking to us yesterday (28), industry sources lamented over the failure of the Cabinet to consider the practical realities that require a price hike, and claimed that milk powder importers can no longer bear the financial burden of providing milk powder at such a subsidised rate.
Sources pointed to the fact that milk powder importers have been importing at heavy losses over the past six months and can no longer operate at these rates. Industry sources further held that the Government is welcome to intervene and import/sell milk powder at these rates, if they so wish.
As such, all signs appear to point to the further extension and exasperation of the prevailing milk shortage in the country.
Meanwhile, sources within the Consumer Affairs Authority (CAA) claimed that they were blindsided by the decision of the Cabinet of Ministers and are not aware of the justifications supporting the decision.
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themorning
Last Friday (24), the Cost of Living Committee finalised a price hike of Rs. 200 per kilogram of imported milk powder and recommended the same for the Cabinet of Ministers.
Speaking to us yesterday (28), industry sources lamented over the failure of the Cabinet to consider the practical realities that require a price hike, and claimed that milk powder importers can no longer bear the financial burden of providing milk powder at such a subsidised rate.
Sources pointed to the fact that milk powder importers have been importing at heavy losses over the past six months and can no longer operate at these rates. Industry sources further held that the Government is welcome to intervene and import/sell milk powder at these rates, if they so wish.
As such, all signs appear to point to the further extension and exasperation of the prevailing milk shortage in the country.
Meanwhile, sources within the Consumer Affairs Authority (CAA) claimed that they were blindsided by the decision of the Cabinet of Ministers and are not aware of the justifications supporting the decision.
....
themorning
