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Cost of Living Sub-Committee to meet to discuss milk powder crisis
View(s):The Cost of Living Sub-Committee will meet on Tuesday to discuss a solution to the milk powder crisis, Industries and Commerce Minister Rishad Bathiudeen told the Sunday Times. Due to the depreciation of the Rupee, traders have been forced to reduce the import of milk powder from Australia and New Zealand over the past few weeks.
This situation may worsen by next month as some traders have decided to temporarily halt the import of milk powder. “At present we import milk powder only to sell it to the wholesalers. We have stopped importing stocks or selling milk powder to the retailers” a leading importer said, while adding that this situation is bound to worsen if a feasible solution is not provided. As the buying and selling rate of the rupee to the US dollar hovers at around Rs 180, traders are faced with increasing losses in addition to the Value Added Tax (VAT) of 15 percent that is imposed on the product.
Repeated requests made to the Consumer Affairs Authority to increase the controlled price of milk powder have failed to elicit a positive response, the trader lamented. The cost-of living committee chaired by Malik Samarawickrama will meet on Tuesday following the cabinet meeting and discuss a solution to this issue, the Ministry of Industry and Commerce and Resettlement and Cooperative Development said.