Powder milk scam to hit local food industry

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FE Report
Powdered milk-based food and confectionary industry is likely to suffer as top importers have put imports of dairy products on hold, businessmen said Monday, following reports on the presence of melamine in eight brands of powered milk.
Local importers bring skimmed or non-fat powdered milk into the country, which is mainly used for preparing biscuits, cakes, sweetmeat, condensed milk, ice-cream and other bakery items.
The government, however, rejected the results of the laboratory tests done by the Dhaka University Chemistry department on eight imported brands of powered milk as 'confusing' and decided to conduct further tests at home and abroad. The department claimed to have found the presence of melamine in all eight brands, including global dairy food giants Nestle and Dano.
"We've halted import of powdered milk over the past two months following 'media coverage' of the presence of melamine chemical in powdered milk," Mintu Hossain, managing director of MH International, said.
Melamine is not suitable for human consumption and if consumed, it can create multiple complications in human bodies such as renal disorder and cancer.
Hossain, whose company is a leading importer of dairy items, said the discontinuation of imports is sure to have a negative impact on the bakery industry as there is no alternative to the powdered milk.
In the meantime, traders at Moulvibazar said, prices of powdered milk have continued to surge in the local market following shortage of the item.
Currently, powdered milk, with each bag containing 25 kilograms is selling between Tk 7000 and Tk 8000, depending on the quality of the product, they told the FE.
Md Liton, general manager at Razzak and Brothers, said that they also refrained from importing it, fearing the possible government clampdown on the dairy product.
"We're facing regular visits by government officials who seek BSTI certificates. This, combined with worry, is discouraging us from importing milk."
He said: "BSTI issues single certificate for a consignment, not for all bags. Then how can we show them BSTI certificates for every bag. This is one of the reasons that prompted us to discontinue imports."
The demand for skimmed milk in the country is estimated at 10,000 tonnes a year.
Bangladesh imports around 30,000 tonnes of full-cream powdered milk yearly and the remaining quantity is imported as baby milk and other industrial purposes.
However, importers said the government should take immediate decision on issue and complete laboratory tests as quickly as possible for the greater interests of businesses and consumers as well.
"We are now waiting for the government decision on test results and subsequently its directives. If we get green signal, then we will resume imports," Mintu said.