Powdered milk import comes to halt
Friday, 24 October 2008
Shakhawat Hossain
Milk powder import has come to zero as the importers, rocked by the current melamine test scam, have suspended opening of fresh LCs for the item, central bank officials and importers said Thursday.
"During the last one week, no fresh letter of credit (LCs) for the import of powdered milk was opened," said a senior official of Bangladesh Bank.
Opening of LCs for the import of powdered milk, an important ingredient of many delicious foods and bakery items, was in a declining trend after the news of melamine in the imported Chinese powdered milk.
During July-August LCs worth US$ 17.20 million were opened for the import of milk powder in the country.
It came down to $12.83 million in September and went further down to only $1.24 million until October 16, according to the BB statistics.
"The test by the Dhaka University chemistry department about the presence of melamine in eight brands available in the local market dealt the hardest blow to the import business of the item," said the official.
"The milk powder sales declined by almost 75 per cent in the last 20 days," said a businessman in the city's main wholesale hub Moulavibazar.
The milk powder sales are declining fast as general people are panicked, said Moulavibazar Business Association president Abdur Razzak.
He said powdered milk will be scarce in the local market in the coming days as importers have put suspension on import of the item in the wake of melamine scam.
The country is totally dependent on import to meet local consumption of milk powder.
It imports around 40,000 tonnes worth nearly $200 million a year. Of them, 30,000 tonnes are baby milk powder and full-cream milk powder while the rest are skimmed milk.
Nestle Sales Director Mohsin Ahmed said they have no other option but to keep suspended the import of milk powder as people are panicked about use of powder milk.
But he expressed the hope that thing would be settled within next one week to help them to resume import of the item.
"The government has made commitment to clear confusion on melamine test within next one week. It is an important health issue in a country that produces milk far less than the consumption," he added.
Allah Food that markets Dano in the local market also expressed the hope that it could start opening of LCs in the next one week.
"We are watching the situation," said its Country Manager Ahmed Kabir, adding that the final government test on melamine would be negative.
Milk powder import has come to zero as the importers, rocked by the current melamine test scam, have suspended opening of fresh LCs for the item, central bank officials and importers said Thursday.
"During the last one week, no fresh letter of credit (LCs) for the import of powdered milk was opened," said a senior official of Bangladesh Bank.
Opening of LCs for the import of powdered milk, an important ingredient of many delicious foods and bakery items, was in a declining trend after the news of melamine in the imported Chinese powdered milk.
During July-August LCs worth US$ 17.20 million were opened for the import of milk powder in the country.
It came down to $12.83 million in September and went further down to only $1.24 million until October 16, according to the BB statistics.
"The test by the Dhaka University chemistry department about the presence of melamine in eight brands available in the local market dealt the hardest blow to the import business of the item," said the official.
"The milk powder sales declined by almost 75 per cent in the last 20 days," said a businessman in the city's main wholesale hub Moulavibazar.
The milk powder sales are declining fast as general people are panicked, said Moulavibazar Business Association president Abdur Razzak.
He said powdered milk will be scarce in the local market in the coming days as importers have put suspension on import of the item in the wake of melamine scam.
The country is totally dependent on import to meet local consumption of milk powder.
It imports around 40,000 tonnes worth nearly $200 million a year. Of them, 30,000 tonnes are baby milk powder and full-cream milk powder while the rest are skimmed milk.
Nestle Sales Director Mohsin Ahmed said they have no other option but to keep suspended the import of milk powder as people are panicked about use of powder milk.
But he expressed the hope that thing would be settled within next one week to help them to resume import of the item.
"The government has made commitment to clear confusion on melamine test within next one week. It is an important health issue in a country that produces milk far less than the consumption," he added.
Allah Food that markets Dano in the local market also expressed the hope that it could start opening of LCs in the next one week.
"We are watching the situation," said its Country Manager Ahmed Kabir, adding that the final government test on melamine would be negative.