PAKISTAN - Another milk crisis is on the horizon in the city as dairy farmers’ associations, unhappy with the government’s capped milk price, have decided to increase the wholesale price of milk by Rs4 from 11 January and then Rs6 from 1 March.
Resultantly, the retail prices of milk will also be increased.
In 2015, the Dairy and Cattle Farmers Associations increased milk prices, in the metropolis unilaterally without the government’s consent by Rs10 per litre, due to which the wholesale price of the milk soared up to Rs81. In their defence, the farmers’ association claimed that the last time the price was increased was in 2012 and the price of fodder had drastically increased since then.
Later, the issue was resolved when former commissioner Shoaib Ahmed Siddiqui intervened and formed a committee to look into the milk prices. At that time, according to Dairy and Cattle Farmers Association president Shakir Umer, the government notified that the rate for wholesale price of milk was Rs64 but in market it was being sold at Rs71.
Since, their cost of production increased manifolds, Mr Umer said that they increased their rate by Rs10 and started selling at Rs81, and then government intervened and formed a committee.
On 1 March 2016, with the recommendations of that committee, former commissioner Asif Hyder Shah issued a notification capping the wholesale milk price at the market rate of Rs73 and retail milk price at Rs80. However, the retail milk price remained at Rs85 in the market despite the government’s notification, said Mr Umer.
Source: The Express Tribune
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