The price of a 400g packet of milk powder will be increased by Rs. 19 with effect from midnight today, the Consumer Affairs Authority (CAA) declared a short while ago.
The price of a 1kg packet, meanwhile, will be increased by Rs. 48. This will bring the price of a 1kg packet that currently stands at Rs. 550 to Rs. 598. A 400g packet, currently sold at a maximum retail price of Rs. 225, will now be sold at Rs. 244.
According to CAA Secretary Anura Siriwardane, the prices are being increased due to requests from various milk production companies to allow them an increase in prices, following a global price hike in the world market.
However, the CAA has allowed for a margincal increase, and according Mr. Siriwardena, was less than the amount asked for by the milk companies.
Since the companies’s businesses would go down if they continued to run at a loss, the CAA decided to allow this increase. Its an overall 8% price increase of power milk products.