950821

Import glut slashes

powdered milk rates

by Rs 200 per bag

RECORDER REPORT

KARACHI: After the arrival of more than 2,000 tonnes of powdered milk, the prices in the local market have declined by Rs 200 per bag of 25 Kgs in the last fortnight.

According to the Jodia Bazar sources, since the withdrawal of 15 percent sales tax from milk powder, many importers have jumped into the trade.

It is learnt that letters of credit worth over Rs 100 million were opened by the importers during the last one week.

The information available revealed that between July 18 and August 13, about 2,350 metric tonnes of milk worth $4.901 million has been imported as against 937 tonnes, valued at $2.024 million of the corresponding period last year, indicating a significant rise of 142.14 percent.

The import of powdered milk was at its lowest ebb during the last six months owing to two major factors - duties/sales tax and exorbitant rise in the international prices.

The prices of the popular brands, according to a leading importer, have gone up to $2,300 from $1,900 during the last four months, whereas prices of another brand of milk powder moved up to $2,100 from $1,800. To offset the hike of 33 percent in the international market, importers urged the government to abolish the 15 percent sales tax from the commodity at import level, in order to rescue the consumers.

The shortage in the milk powder also raised the prices of liquid milk from Rs 12 to Rs 18 per liter. But as the import of powdered milk commenced it was expected that the fresh milk prices would also go down. However, according to a representative of fresh milk dealers, due to massive upcountry flood fresh milk production has suffered badly as hundreds of cows have been drowned and, the transport system has been disrupted.

An importer of Jodia Bazar said that prices of vegetable fat milk powder declined to Rs 200 to Rs 300 per tonne soon after the sales tax waiver was annouced by the government and now it is Rs 600 per tonne lower. Even the prices of loose powdered milk have come down from Rs 10 to Rs 12 per kg in different markets of the city.

Prices of skimmed milk would definitely go down not only due to the sales tax removal but also due to decline in the international market expected by October-November season, because during this period European Community, specially Holland, produces bulk of its powdered milk.