Dry milk prices surge by Rs 2300 per 25 kg in four months

Dry milk prices have shot up by Rs 2300 per 25 kg during last four months due to hoarding of the commodity by importers, and its prices have reached $3700 per ton from $2700 per ton in the world market, sources said on Thursday.
They said that rapid increase of commodity demand in the wholesale market made it costlier in retail market by at least Rs 95 per kg, bringing down its sales to almost half.
The locally produced dry milk prices during last four months have registered an upsurge of Rs 95 per kg--maximum so far--with a rapid pace due to no check by the government, sources said. "Locally manufactured dry milk price have hit the market harder than imported milk, including Irish and Australian," they observed.
The price of local dry milk has touched the highest level of Rs 6600 per 25 kg bag, which was being sold at Rs 4300 per 25 kg in February 2007, depicting an increase of Rs 2300 per 25 kg, they said. Similarly, its price in the retail market have surged to Rs 275 per kg from Rs 180 per kg, denoting an increase of Rs 95 per kg in four months.
The major reason behind the surge in local powder milk price, according to sources, is repackaging of the commodity into other packed brands with increased prices. The Irish brand price has reached Rs 6900 per 25 kg, mounting gradually from Rs 4900 per kg, showing an increase of Rs 2000 per 25 kg during last four months, they said.
Furthermore, in the retail market the commodity is now available at Rs 290 per kg increasing from Rs 205 per kg during the same period, surging up by Rs 75 per kg, they added. They said that price of powder milk from Australia has now gone up to Rs 6700 per 25 kg, while four months ago it was Rs 4600 per 25 kg, indicating upsurge of Rs 2100 per 25 kg. They said that the Australian brand milk had also gone up in the retail market by Rs 86 per kg, reaching Rs 280 per kg from Rs 194 per kg during the same period.
However, importers have held the packed milk producers responsible for the increase of dry milk prices besides increase in prices of the commodity in the world market.
They said that local dairy industry should give up manipulating prices of milk, which is an essential item of daily use. "US, a pioneer of dry milk production, has gone on buying the commodity excessively, bringing about a shortage-like situation in world market," they added.