KARACHI - Milk prices have been increasing unabatedly with addition of Rs10 per litre at retail market so far in 2011 on the back of high utility and transportation cost.
The milk prices surged by Rs 2 at retail level recently to reach Rs 70 per litre as farmers and dealers have passed on their expenses to end consumers. However, the local government has set the retail prices of milk at Rs 60 per litre in consultation with the representatives of dairy farmers association a few months ago. However, the dairy farmers of the city rejected the official rate and increased the price of fresh milk by Rs6 a litre. In May, they again increased the rate by Rs2 per litre.
The milk sellers hiked retail prices unilaterally without approval of the government. Consumers strongly criticised the government for failing to take action against milk sellers who were already selling the commodity on exorbitant rates. They also condemned the dairy farmers for unlawfully charging Rs10 per litre. Kokab Iqbal Chairman Consumer Association of Pakistan said that Karachiites consumed 7 million liters fresh milk per day. He added that just a single rupee increase in milk price make a big difference. Wholesaler and retailer staged the lame excuses for the price hike, he added.
Talking to The Nation he said that the reason which is given for the price increase not matches with expense of farmers and there is big difference between cost and profit.
He added that government should take action against tetrapak companies who establish so many collection points in various part of the country but they didnt establish the dairy farms and this gives support the wholesaler and retailer of milk.