Wholesalers and retailers of imported powdered milk for children under six will have to explain their prices to the Price Administration Department from Friday, October 1.
The requirement, contained in Finance Ministry Circular 112/2010/TT-BTC issued late last week, is intended to halt the volatility of the product's constantly rising price.
Price Administration Department Deputy Director Nguyen Anh Tuan explained the action was necessary because of the remarkable change in the powdered-milk price.
The department would work with all powdered-milk companies to set a common price for each product, he said.
Prices outside those set would be suspended and vendors who broke the rules would either have to pay the difference between the two prices or have their business licences revoked.
The department planned to have wholesalers and retailers register their prices with local authorities to deal with the heavy work load.
The price for imported powdered milk has long bewildered both price administrators and consumers.
Several dairy firms raised their prices by up to 10 per cent earlier this month supposedly to offset higher input costs but many suspect it was done to increase profits.
To be updated