Some mainlanders accused of buying milk powder to be resold for profit

The shortage of milk powder continues to arouse concern and even anger among a great many local parents.

Many point their fingers at mainland parents who buy large quantities of milk powder in Hong Kong, leaving the shelves barren.

The situation has aroused further suspicion that some of the people who are scooping up milk powder from local shelves are doing it for profit.

Many of the local parents have demanded that the government levy a tax on departure for mainland visitors who take milk powder out of the market.

The government responded that such a measure requires careful consideration.

The problem of the milk powder shortage in Hong Kong has been deepening in recent days.

Many parents, spread across several districts, have been unable to obtain milk powder for their infants at local drug stores.

On a phone-in program Friday morning, one woman complained that she had been unable to obtain milk powder for her daughter for three months.

Another caller said although he has a relative working in a drug store, he found it hard to obtain milk powder and he was told that supply was scarce.

A woman who lives in Tuen Mun district not far from the boundary said she suspected some mainlanders come to stockpile milk powder in Hong Kong and re-sell it on the mainland for profit. She said she has seen many mainlanders filling suitcases with the powder.

The Hong Kong General Chamber of Pharmacy Ltd admitted mainland people are coming to stockpile milk powder in the Hong Kong drug stores at high prices.

"They are willing to offer an additional HK$50, say from HK$200 to HK$250, for each tin of milk powder and take it back to the mainland to make money. These people will ask a drug store to sell them whatever quantity they have in stock," said Lau Oi-kwok, the chamber's chairman.

Given the lucrative profits, he said many drug stores are willing to sell to the mainlanders and the chamber could hardly intervene.

On some parenting websites, local mothers and fathers are urging the government to restrict mainland visitors to one tin of milk powder on departure. Some suggested the government impose a tax on excesses of that amount. Other parents suggested a punitive tax of 10 times the price of milk powder to combat smuggling.

Secretary for Food and Health York Chow said the government has contacted suppliers who have assured local officials there will be an adequate supply.

He added, only certain brands are short of supply.

Connie Lau, chief executive of the Hong Kong Consumer Council, said she found it strange that parents could not buy milk powder while suppliers said there is adequate supply.

She said she would contact the suppliers to ask them to provide stable a supply and assist parents who are unable to buy the brands with which they have been feeding their babies for some time.

However, the council said it detects no evidence of hoarding.

China Daily

(HK Edition 01/29/2011 page1)