COPF Chief: Milk food pricing formula discarded again to help importers make a killing
… frowns on trade minister’s role in the questionable process
By Shamindra Ferdinando
Chairman of the Committee on Public Finance (COPF) Dr. Harsha de Silva yesterday (28) said the Trade Minister shouldn’t play any role in setting prices. Instead, pricing formulae had to be introduced, the SJB lawmaker said.
Dr. de Silva said so when he was asked whether the Trade Ministry and milk food importers followed the formula introduced by him during the tail end of yahapalana administration. The former UNP State Minister said the latest reduction of milk food prices hadn’t been done according to the formula decided by the House Committee years ago.
Recently, the prices of packets of one kilo and 400g of imported milk powder were reduced by Rs. 150 and Rs 60, respectively.Responding to queries regarding the formula remaining suspended since 2019 and what he in his capacity as Chairman of the COPF intended to do, Dr de Silva said that ministers shouldn’t have any role to play in setting prices.
“That is not their job. Ideally, there should be sufficient competition in the market to establish a fair price. If not or if there is a collusion then the regulator, in this case the Consumer Affairs Authority, must have a transparent process to establish a fair price. A good way to do that is a formula. This type of non-transparent pricing involving politicians is an absolute no.”
Dr. de Silva recently lashed out at the Consumer Affairs Authority and the Finance Ministry for failing to implement the milk powder pricing formula, thereby allowing milk powder importers to make a killing. Even after that intervention, the relevant authorities haven’t acted on the instructions issued by the House Committee.
