Anchor set to increase its milk food prices

Following the increase of milk food prices on Friday, June 1, Fonterra Brands Lanka has also requested the Consumer Affairs Authority (CAA) to approve a price increase for Anchor milk.

Fonterra Brands Lanka (FBL), which is the distributor of Anchor milk powder, is currently in negotiations with the CAA to gain approval for the price hike as six of FBL’s competitors have been allowed to increase their retail prices as of last Friday.

FBL’s Corporate Affairs Director Chetiya Sri Nammuni told The Sunday Times that FBL had applied for a price increase of about the same range as its competitors.

“We are negotiating certain conditions to the agreement at the moment and we hope to get the increase approved as world market prices have also increased,” he said.

Mr. Nammuni said that various proposals had been submitted to the CAA while the exact price increase could not be foreseen. Meanwhile, six popular brands - Lakspray, Nespray, Highland, Laksathosa, Diamond and Sunray have raised their prices by as much as 25%. All six brands increased the price of their 400g packs to Rs.180 while their 1 kg packs were priced at Rs.425.

Highland milk saw an increase of Rs.40 on its 400g pack while the 1 kg pack saw a thumping increase of Rs.85 as Laksathosa made similar hikes.

A 400g pack of Lakspray saw an increase of Rs.26 while the 1kg pack saw an increase of as much as Rs.50. Nespray’s 400g pack was Rs.17 dearer while the increase of a 1kg pack was Rs.25.

Ministry of Trade and Consumer Affairs Secretary Dr. R.M.K. Ratnayake said the Government was helpless in the matter as world market prices demanded that these companies raise their prices.

“The CAA will have to allow the increase in price of Anchor milk as well, because we cannot expect these companies to run at heavy losses. They must stay competitive in the world market,” he said.

Dr. Ratnayake said the CAA approved the hikes of these six brands under the condition that 25% of their production is given as economy packs to be sold at reduced prices.

However, along with their other hikes, Lakspray and Nespray increased the prices of their 400g economy packs to Rs.152 which is an increase of Rs.6.50 and Rs.8.50 respectively.