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* Milk powder importer in Sri Lanka ordered to immediately release hidden stocks
Sat, Jan 4, 2014, 10:43 pm SL Time, ColomboPage News Desk, Sri Lanka.

Jan 04, Colombo: Sri Lanka's Consumer Affairs Authority (CAA) has ordered a milk food company to immediately release the stocks of stashed milk powder to the market.

The company has imported 20 containers of milk powder and they remain in the container yard in Orugodwattta, according to CAA. The stock contains around 500 metric tons of milk powder.

The Authority says the importers are hoarding the milk powder stocks creating an artificial shortage to demand a price hike.

The Consumer Affairs Authority has warned that it will take legal action against any importer, manufacturer, or distributor of milk powder who hoards the essential item without approval from the Authority.

Prices of milk powder, an essential commodity in Sri Lanka, are controlled by the state Consumer Affairs Authority and the government has turned down requests from milk powder companies to increase the prices.

Milk powder companies have sought an increase of price of milk powder by Rs. 250 per kilo.

Meanwhile a strike launched by the employees of the state-owned Milco Company against the management had also affected the supplies of locally produced Highland brand of milk powder.

The employees of state owned milk food company Milco have launched a strike against the management.

The management accuses that the trade unions are under a contract of the foreign milk food companies.

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