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Milk powder, LPG, wheat flour, cement prices: Hikes possible without CAA approval

09 Oct 2021

  • Removal of MRPs allows companies to hike prices
  • Importers, suppliers asked not to make unfair hikes: Govt.
By Yoshitha Perera Commenting on the removal of the maximum retail prices (MRPs) on liquefied petroleum gas (LPG), milk powder, wheat flour, and cement, State Minister Lasantha Alagiyawanna said that action would be taken if the prices of these products were increased unreasonably. Speaking to The Sunday Morning, Alagiyawanna said he held a meeting with the relevant companies and importers of the above-mentioned products last Friday (8) and had instructed them to refrain from unfairly increasing prices. Meanwhile, speaking to The Sunday Morning, an official from the Consumer Affairs Authority (CAA), who did not wish to be named, said that the State Minister had excluded milk powder, LPG, cement, and wheat flour from the essential commodities list via an extraordinary gazette on Friday, while the CAA Chairman had removed the MRPs on these products by issuing another gazette. “With these decisions, the relevant companies can increase the prices of these goods without the CAA’s approval. However, at a meeting held last Friday with the State Minister, the companies agreed that they would not go for a price increase that would harm the consumers,” the official from the CAA said. He added that, at the meeting, while milk powder importers had presented their proposed prices, the State Minister and the CAA had requested them not to unfairly hike prices. “Milk powder importers had proposed a price increase of Rs. 350 for 1 kg of milk powder and Rs. 140 for 400 g. However, we asked them not to implement such a price hike, and they agreed,” the official said. Speaking to The Sunday Morning, the Milk Powder Importers’ Association (MPIA) said that products would be available in the market by Wednesday (13) and that they had agreed to the prices proposed by the CAA. MPIA Member Lakshman Weerasuriya said that according to the new price increase, the price of a packet of 1 kg of imported milk powder would be increased by Rs. 250 while a 400 g pack would be increased by Rs. 100. Following the price revision, 1 kg of milk powder would be sold at Rs. 1,200 while a 400 g pack would be sold at Rs. 480. Earlier, the two LPG companies – Laugfs Gas PLC and Litro Gas Lanka Ltd. – requested a price hike of Rs. 550 for the 12.5 kg gas cylinder, cement companies requested a price increase of Rs. 50 per bag, and wheat manufacturers requested for a price hike of Rs. 10 per kg from the CAA. Several attempts to contact the relevant companies to ascertain the details of the possible price increases proved futile. The Government last Thursday (7) decided to remove the price controls on cement, LPG, milk powder, and wheat flour. The decision was taken during a special meeting between President Gotabaya Rajapaksa and the Cabinet of Ministers.


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