Importers of milk powder have called for an increase in the price of a kilogram of milk powder to Rs.1,300 and a 400g packet to Rs.520.
The importers submitted the proposal for the hike to the Consumer Affairs Authority.
Member of the Milk Powder Importers Association Lakshman Weerasuriya said they proposed a Maximum Retail Price for milk powder.
He said the price could reduce at times depending on each manufacturer.
Weerasuriya said local manufacturers can maintain the current prices as they are not subject to dollar rates, shipping costs and Value Added Tax that apply during milk powder imports.
He claimed that the dollar is currently at Rs.203 while a packet of milk powder is between USD 4.10-4.20.
Weerasuriya said the price hike is not unjust to consumers, adding that the Consumer Affairs Authority will be compelled to agree to the proposed price.
Milk powder importers decided to halt milk powder imports after approval was not granted to increase prices.
Releasing stocks of milk powder from ports was delayed due to the non-issuance of dollars through commercial banks.
However, the importers said the milk powder will be released on Monday after receiving the relevant exchange.
The government last night announced that the control price imposed on milk powder was being lifted.