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Powdered milk gets dearer for second time in eight months

| Updated: March 09, 2020 11:47:17


Powdered milk gets dearer for second time in eight months

Prices of powdered milk of many brands increased in Bangladesh's market in the last couple of days which the traders attributed to an upward trend in prices of the essential item in global market.

This is the second time in the last eight months that prices of powdered milk or skimmed milk have increased, according to the Trading Corporation of Bangladesh (TCB).

Powdered milk prices first increased in the local market in July, 2019, after imposition of higher customs duty on the product by the government, according to traders.

Powdered milk of Dano brand, a product of multinational Arla Food, and local brands Marks and Diploma witnessed a hike by Tk 30-40 per kg in the last two days.

The state-owned TCB recorded a 6.0-7.0 per cent hike in powdered milk prices of these brands in the past two days.

Dano full cream powdered milk, a widely-used milk powder of Arla, was sold at Tk 620-640 per kg with a new price tag inscribed on its package from Friday.

Marks, a product of Abul Khair Group, was retailed at Tk 540-560 per kg on the day while Diploma, product of New Zealand Dairy Products Limited, at Tk 620-630 a kg, at different shops in the city.

However, a few shops were selling the items at earlier rates on the day as they had old stocks of those milk brands.

Jamal Hossain, a grocer at Madhubazar in West Dhanmondi in the capital, said most of brands have raised prices of one kg, 500 gm, 400 gm and 100 gm packs.

He said that they have already got one-kg packs with new price tag on each container.

He said sales executives of those companies had informed that they would supply all packs with new price rates written on them within a few days, he said.

Md Akhtaruzzaman, a Kaptan Bazar-based trader said: "Prices have increased 3.0 to 4.0 per cent at wholesale level in the last one week."

He said the powdered milk-producing companies raised the rates of their respective products citing global price hike in the last three months.

He said the prices of the powdered milk marks a rise in European countries during the winter season amid a disruption in supply due to heavy snowfall in the continent.

He said prices of bulk 'whole milk powder' increased to US $3250 per tonne in February this year from $3100-3,150 in January.

He said the government raised customs duty to 10 per cent in the current fiscal year which was 5.0 per cent earlier.

The higher duties on imported milk is also causing surge in powdered milk prices, he added.

According to the Department of Livestock Services (DLS), the country produces 9.8 million tonnes of milk against a demand of 1.5 million tonnes per annum.

Imported milk powder meets the shortage in the country when demand is increasing at a rate of 10 per cent.

The commerce ministry data shows the country imported 0.145 million tonnes of powdered milk (both whole powder and skimmed) in the last financial year (FY 2018-19).

Multinational companies Arla and Nestle, and local importers New Zealand Dairy Products BD Ltd, Meghna Group and Abul Khair Group are the key players in the powdered milk market in Bangladesh.

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