Traders who wrongly profit from new milk prices to be prosecuted

Irangika RANGE

The Consumer Affairs Authority (CAA) will take legal action against 75 traders who sold previous stocks of milk powder at the new prices.

Co-operatives and Internal Trade Minister Johnston Fernando told the Daily News that the CAA has already commenced the raids from last week to nab errant traders who sell the existing milk powder stocks at revised prices.

He said though milk powder prices were increased from midnight last Friday (May 11), the current milk powder stocks available in stores should be sold at previous price until the old stocks are sold out.

Although prices have been increased it would take some time for the new prices to come into effect in the market, the minister said.

The old price of a 400g milk powder packet is Rs. 264 while a kilo of milk powder packet is Rs. 647.

The minister said the law will be strictly imposed against errant traders who try to change the prices of existing milk powder stocks and sell them at the new prices.

The 75 traders had pasted stickers over the old price tag or had scratched off the old price and written the revised price on milk powder packets. They will be prosecuted.

The CAA has received many complaints against several traders who had sold existing stocks of milk powder available in stores at new prices.

"If any trader tries to earn profits by placing unnecessary burden on consumers, stern action will be taken against them," he said.

Minister Fernando further said that these raids will continue until the old stocks of milk powder are sold out.