The milk distribution Programme for school children was implemented in 2014 by the Ministry of Education Services in collaboration with Milco (Pvt) Ltd. with a view to promote liquid milk consumption, encourage Dairy Farmers and to familiarize habit of taking local food items.

Accordingly, this program was implemented under a tri-lateral agreement signed among Milco (Pvt.) Ltd., Ministry of Education Services and Ministryof Livestock and Rural Development.

As per a Cabinet decision, the payment for year 2014 made to Milco (Pvt) Ltd. was at a rate of Rs.18/- per packet of milk in quantity of 150ml per child. Then the Government had determined a minimum price of Rs.50/- for a litre of milk.As per the new Budget proposal 2015, the price of a liter of milk has been increased up to Rs.70/-. Considering this price escalation, Milco (Pvt) Ltd. has forwarded a request to increase the price for a litre of milk from Rs.18/- to Rs.20/-.

Accordingly, the proposal made by Minister of Education Akila Viraj Kariyawasam, to continue the above project by purchasing a milk packet of 150ml at Rs. 20/- for school children from MILCO (Pvt.) Ltd. by renewing the existing agreement, considering the increase of the purchasing price of a Litre of milk to Rs. 70/-, was approved by the Cabinet of Ministers.