Milk powder prices are rising by up to 12% this month on the local market despite the Government’s effort to curb prices, say local retailers in HCMC.
Milk powders produced by Vietnam Dairy Products Joint Stock Company (Vinamilk), such as Dielac, Alpha, Mama and Ri – Alpha, have increased in prices from January 1.
Do Thanh Tuan, chief of public relations department of Vinamilk, attributed the rally to a 15% increase in material prices and depreciation of Vietnam dong against the US dollar.
Last month, the company raised the prices by 3% with an excuse of buying raw milk from farmers at a little higher price.
Vinamilk’s move at this time is considered to be against the Ministry of Finance’s regulation. The ministry has told dairy companies as well as milk traders not to increase prices because reasons for the price rise are not accepted.
Evidences collected by relevant authorities show that local raw milk prices do not increase, while prices of imported ones are falling. Therefore, the ministry has asked the HCMC Department of Finance to review input costs and to ensure milk companies will not increase prices of their products if input costs are unchanged.
Information from VietnamBusinessAsia