Milk firms asked to explain prices
Milk firms asked to explain prices
The Ministry of Finance's Price Management Department has required six dairy producers to report on their retail milk prices for products aimed at children aged under 6 years old.
The six businesses are Mead Johnson Nutrition (Viet Nam) Company ; 3A Nutrition (Viet Nam) Company; Nestle Viet Nam; Tien Tien Distribution Company; FrieslandCampina Viet Nam and Organic Viet Nam.
According to the ministry under the Price Law dated June 20, 2012 - Clause 2: Article 15 - milk prices for children under six years old are subject to government regulation.
On October 4, the Ministry of Health issued a circular defining milk for children under six years old as a product whose prices will be put under the Ministry of Finance's management.
The list also includes milk products and food supplements for children under 36 months old as well as milk and nutritional products containing milk regardless of whether or not it contains supplements.
Liquid milk for children under six will also be put under the same controls. This circular will come into effect from November 20, 2013.
According to the Price Law, which took effect on January 1, this year all enterprises – referring to producers, importers, and distributors – are required to report any proposed hike in the price of milk for the infants to the Price Management Department.
By doing so, milk companies are obliged to declare any increase or decrease in the retail price of milk aimed at the under-six market segment prior to November 25, 2013.
Deputy Minister of Finance Tran Van Hieu has also asked his department and other market watch divisions to inspect the price declarations and list the retail prices set by milk producers and traders.
Hieu said if any violation was found it would be handled strictly and publicised.
In addition, the Ministry of Finance also asked People's Committees in the provinces and cities to report on the development of milk products for children under six so as to identify any emergent problems.
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