Milk price cap renewed until July

By Peter Stevenson

THE MINISTRY of commerce and industry had decided to renew its 45-day price cap on milk for the third time despite disapproval from consumer groups.

The price of milk is set at €1.41 per litre for retail and €1.32 per litre for wholesale, including VAT and was originally implemented by former Commerce Minister Neoclis Sylikiotis in January.

The new price cap will expire on July 19 and throughout the duration of the decree no problems had been reported according a senior commerce and industry official.

“We have had full co-operation from retailers and wholesalers who have not wavered above the price cap which was set,” he told the Mail.

Asked whether he believed the cap would be renewed again on July 19, the official said that the ministry could not foresee if there would be problems within the next 45 days.

But head of the Cyprus Consumers & Quality of Life Union, Loucas Aristodemou said he did not believe the price cap worked in favour of the consumer and was still waiting to meet with current Commerce Minister Giorgos Lakkotrypis to discuss the issue.

“The minister has met with all the relevant groups that are being affected by a price cap except the consumers’ unions and they have gone ahead and renewed it for a second time under the new minister without consulting us,” he said.

Aristodemou added that the price-cap set on wholesale milk was having a knock-on effect with consumers bearing the brunt.

“Why would wholesalers bother putting the price below the price-cap ceiling of €1.32 per litre and risk making a loss?” he asked. “Supermarkets who are then charged the maximum possible need to make a profit so they charge the most they can, resulting in the consumer paying more for milk in some instances than before the cap was set,” he explained.

Aristodemou said he believed the ministry was protecting its own interests instead of trying to help consumers during this financially difficult period and showed that the government was not interested in protecting consumers.

“We find it unacceptable that we are being ignored as we are one of the few groups that try to protect consumers, which is even more important now during this economic crisis,” he said.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.