Financial Times

Government seeks cheaper milk and flour
By Anjuli Gunaratne
The government is negotiating with some foreign sources for cheaper milk and wheat aiming at bringing down the cost of living.

S. Virithamulla, Secretary Ministry of Trade, Commerce and Consumer Affairs, said while Amul, the Indian milk company, is one alternative, the government was negotiating with others as well to import cheaper milk (powder).

"We are (still) in the process of looking for the best option because the quality of milk products is important to us," he said. Last week ministers Anura Dissanayake and Jeyaraj Fernandopulle, in the delegation that accompanied Prime Minister Mahinda Rajapakse to India, discussed cheaper imports of milk and wheat flour from India. The Indian government has said it is prepared to provide wheat to Sri Lanka at a subsidised rate.

Jeremy Ferreira, Head of Marketing at Sathosa, said that Sathosa was currently having discussions with the government to use its 150 outlets as a channel for cheaper milk and flour imports but was unaware of the source of the supply.

He added that Sathosa's main concern is to give customers value for money and to lower the cost of living for its customers. "We are willing to support the government in the steps that are being taken," he said.

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