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No milk powder: CAA says not considered ‘essential’
Amid an acute shortage of powdered milk, the Consumer Affairs Authority said yesterday it did not consider milk powder an “essential item” and hence would not take immediate steps to end the crisis. CAA Director General J.M.A. Douglas said that as powdered milk was not considered an ‘essential’ item, the CAA would not take swift action but it was checking whether the shortage was created by milk powder companies.
While the Consumer Affairs Authority insists that milk powder is a non-essential item, these desperate mothers rushed to a supermarket yesterday on a report that milk powder was available, but they were disappointed when they found no milk powder. Pic by Indika Handuwela
He said that claims by milk powder companies that they were running at a loss would be closely examined before taking a decision on whether to allow an increase in prices. Mr. Douglas said the CAA had not received complaints from the people regarding milk powder shortage. It was only when such complaints were made that the CAA could investigate and take action.
However, many people told the Sunday Times they were seeing only empty shelves in supermarkets or grocery stores and desperately searching for milk powder, even for their morning cup of tea. Fonterra which supplies Anchor and Ratthi brands and holds 60 per cent of the market said that with global dairy prices at a record high, the company was unable to increase production to levels that met the current market demand.
“We have been absorbing these costs for many months; however, as international prices have continued to increase, we have been talking with the relevant Government authorities about a retail price increase,” the company said in a statement to the Sunday Times. Regarding the recent statement by Minister Johnston Fernando, that 10 container loads of milk powder are at the port without being cleared, Fonterra said the consignments at the port were undergoing the standard clearance process.
“Once complete, these containers will be transported to our manufacturing facility for processing into product,” the New Zealand headquartered milk powder company stated.