Commissioner Karachi-led meeting agrees on Rs 10 hike in milk prices

KARACHI: A meeting discussing milk prices, chaired by commissioner karachi, decided in favour of an upward revision worth Rs 10 per litre.

Led by Karachi Commissioner Ejaz Ahmed Khan, the participants of the meeting unanimously agreed to bump up the price of milk from Rs 85 to Rs 95 per litre.

A notification of the revised milk prices is likely to be issued today.

In a statement issued late Wednesday night, Shakir Umar Gujjar, the president of the Dairy and Cattle Farms Association (DCFA), confirmed the price of milk for farms has been set at Rs 86 per litre.

Nevertheless, milk shops are expected to remain closed today as well as retailers, while willing to sell milk at Rs 95 per litre, were reluctant over the government-ordered 75-paisa reduction in their profits decided in the meeting.

While cattle farmers and wholesalers, on the other hand, were satisfied with the government-backed boost, citizens continue to suffer from the supply crisis as they remained caught in power game of the milk mafia.
Just yesterday, it emerged that retailers, who were forced to sell milk at the government-approved price of Rs 85 per litre, had raised complaints that they were unable to break even after purchasing milk at Rs 95 per litre.

“Wholesalers are selling [milk] at a price nine rupees above what the government has set,” a retailer told media reported.

“We have stopped purchasing [from the wholesalers] since yesterday.”

According to an estimate, the metropolis’ daily milk demand of 4.5 million litres is faced with a deficit supply of at least a million litres.

However, Gujjar said the Rs86-per-litre price comprises cost and profit worth Rs84.96 and Rs1.04 per litre, respectively. The wholesale price, on the other hand, was set at Rs 89.75 per litre.
The top DCFA official also mentioned that the prices of milk will now be adjusted every three months by an inflation-linked rate.
Early last month, the commissioner  ordered strict action against the retailers who were not selling milk according to the government-prescribed prices.
During a meeting with dairy and cattle farmers, Ejaz Ahmed had said a crackdown would be launched against such retailers, warning that those flouting government regulations would be arrested.
With the negotiations, going on back then, between the farmers and the commissioner, the latter had stated that there will be no increase in milk prices after farmers put forth a request for an increase of Rs 15.