The price of imported dry milk has shot up by Rs 800 per 25-kg sack to a record high level of Rs 7,700 per 25-kg sack due to imposition of import trade price (ITP) and shortage of commodity in the world market, said importers on Tuesday.
"The government''s imposition of ITP on powder milk import has basically given rise to its prices in the local market. And this was inevitable to happen," they added.
Criticising the local dairy farming industry, they said it had been enjoying 20 percent subsidy, but failed to provide the commodity to consumers on reasonable rates. "This industry has completely failed to minimise the increasing price of fresh and dry milk," importers added.
After this upsurge, the price of Irish brand now reached Rs 7,700 per 25-kg rising from Rs 6,900 per 25-kg in the local market. It is now available at Rs 320 per kg from Rs 300 per kg, depicting an increase of Rs 20 per kg in the local market.
Similarly, Australian brand powder milk price has gone up by Rs 300 per 25-kg. It was earlier being sold at Rs 6,600 per 25-kg, which is now available at Rs 6,900 per 25-kg in the wholesale market. Its price in the retail market jumped by Rs 10 per kg, as was earlier being retailed at Rs 266 per kg.
The importers said that in the absence of efficient and productive dairy farming industry, they were compelled to import dry milk, which would always be more expensive than the locally produced commodity.
"This increase in prices of the commodity is feared to further continue in future due to various issues, including its world-wide shortage, elimination of subsidies in European countries on dairy farming and increasing buying by US in the world market," they said. The United States was the once major producer of this commodity has now turned to purchasing it in a huge quantity in the world market, which is one of the chief reasons behind the continuous rise in its prices, they maintained.
Calling upon the government, they said it should also support the importers of this commodity by lowering the withholding tax, which could help its prices stabilise at a single point. They also said the government should take action against such farms behind the increase of locally produced milk prices in the market.
However, retailers alleged that this upsurge in prices of powder milk had taken place not due mainly to imposition of ITP by the government but monopolisation of market by fewer importers was the major reason.
They said there was a cartel involved in price increase by making huge profits while concerned authorities have turned a blind eye to this issue. As a result, consumers will now endure additional financial burden on purchase of dry milk, they added.
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