Importers have received what they had feared for a few days: the new price list for milk. The ministry of Commerce is adamant: importers have charged too much for powdered milk. Their profit margin is too high and he will not change his mind. Consumers are very happy to see the new prices coming into force!

The new list follows a decision of Cabinet ?to amend existing regulations made under the Consumer Protection (Price and Supplies Control) Act to bring the price of milk powder under the ?mark-up? regime, which is meant to protect consumers from profiteering tendencies of certain importers.? Some trademarks will face a drop of up to 41%. The 500g-pack now costs between Rs 40.27 and Rs 50 while the cost of a kilogram varies between Rs 81.15 and Rs 100. Ten out of 12 registered trademarks have been affected by the decrease.

Only Nido costs a bit more. This is because it is the only trademark imported already packaged. Others import the milk in powder form and it is packed here. Importers claim that the packaging of milk locally should be a reason not to reduce the prices. ?These expenses have to be taken into consideration.? With the new margin, importers say they make only a 4% profit after deducting expenses. After retailers have taken their 6% profit, ?we have a 2% loss,? asserts the manager of Happy World Foods. But the minister is confident that importers will in time accept the new price list?