|Milk food price hike being
By S. Selvakumar
The Pricing Authority of the Ministry of
Cooperatives and Internal Trade has begun
deliberations following a request by the importers
of milk foods that prices be increased to enable the
business to be economically viable and avoid chaos
Milk food importers on Thursday held a press
conference and aired their woes. According to them,
a 400 gramme packet of milk powder should be
increased by at least Rs. 46 and failing to do so
could result in a massive shortage since a majority
of them would be compelled to stop imports.
This was not the first time in the recent past that
milk food importers requested a price hike.
But their requests fell on deaf years, but this time
round the Ministry has responded and instructed the
Pricing Committee to go into all aspects and submit
a report to consider the importers’ request.
Asked how long it would take for the report to be
submitted, a spokesman for the Ministry said that he
just could not give a time frame but assured it
would be done soon and remedial action taken.
At Thursday’s press briefing the importers said that
they had been demanding a reasonable price hike
during the past ten months but without avail. They
said the prices of milk foods had skyrocketed in the
world market but locally they still retail at the
same old prices that prevailed before the global
Though the local milk production had increased to an
appreciable extent in the recent past following
state sponsored incentives yet the demand far
A spokesman for the milk food importers said that at
present they were losing Rs. 118 per kilo on
imported milk powder. He said the price of a ton of
milk powder had increased from 3,200 dollars a ton
ten months ago to 4,630 in the past ten months, a 44
per cent increase.
Permission was granted in June last year to increase
the price of a 400 gram pack from Rs. 225 to Rs.
244. He also said the global prices had shot up
sharply following a heavy demand from Japan
consequent to the March 11 devastating earthquake,
tsunami and the Fukushima nuclear disaster in that
country affecting its dairy industry.
The Ministry spokesman also said the interest of the
consumers as well that of the importers would be
taken into consideration when the new price
structure was worked out.