CAA To Probe Infant Milk Price Hike

By Indika Sri Aravinda

The Consumer Affairs Authority (CAA) says it will investigate what it terms as an illegal price increase of infant milk powder.

Chairman of the Consumer Affairs Authority Rumy Marzook said that some companies have increased the price of a kilo of infant milk powder by Rs. 400 and a 400 gram pack by Rs. 160.

Marzook said that some companies had put forward a request to increase the price of infant milk but it was not approved. He said that a ceiling price will soon be introduced on infant milk powder and a investigation will also be conducted on those violating the law by selling milk powder above the approved market price. The CAA last month initiated raids to apprehend errant traders selling old stocks of milk powder at the revised prices. Some traders had placed stickers with new prices on the cartons or altered the price by hand. Legal action is being taken against those traders, the CAA said. The government last month also raised the price of imported milk powder in a move to protect the local dairy farmers.