Milk, yogurt prices soar ahead of Ramazan

GHULAM ABBAS

KARACHI: A fresh move to control prices of items of daily use was thwarted by profiteering retailers after milk and yogurt prices soared again just a month before Ramazan.

Yogurt, which is caonsumed in large quantities in summer, jumped above Rs100 per kilogramme, while fresh milk was being sold at Rs74-75 at retail outlets, contrary to government-fixed rate of Rs70 per kg.

Although all district managements under Deputy Commissioners had fixed rates for yogurt and milk as Rs90/kg and Rs70/litre, respectively, displaying banners at various markets and shops, retailers rejected the prices, saying that they were contrary to wholesale rates.

Inaction was very visible on part of authorities concerned despite open violation of government directives, as retailers, dairy farmers and wholesalers of fresh milk continue to overcharge consumers with complete impunity.

There were a few cases where officials were reported to have imposed some fines on traders.

Interestingly, powerful firms marketing packed milk had always been given a free hand to whimsically increase prices: the price of packed milk also jumped to Rs90 from Rs75 over the past six months.

Private companies in this sector had also enhanced retail price of milk by Rs6/liter soon after the government decision to increase the retail price of fresh milk to Rs70/litre from Rs60 a litre. There is no authority regulating these private companies.

Talking to Business Recorder, Waheed Gaddi, the Media Adviser of All Karachi Milk Retailers Welfare Association, claimed that prices set by the government did not reflect the already set criteria for increasing rates. Through various notifications issued in December 2010, April 2011 and January 2012, changes had been made in prices in accordance with an agreed upon formula, he said. However, he said, the latest one that was issued last month did not set the price in accordance with that formula.

Production, wholesale and retail prices were previously being set with a difference of at least Rs4 per litre. He said that the latest notification "gives retailers a profit margin of just Rs1.63/litre against Rs2.5/litre allowed to wholesalers over their production rates".

Thus, he said, the government's current fixed rates of Rs64.5/litre, Rs67.1/litre and Rs70/litre for producers, wholesalers and retailers, respectively, were "not acceptable for retailers".

Accusing the government of fixing prices in connivance with dairy farmers and wholesalers, Waheed said that the official retail rate of yogurt had also not been fixed. "This is being set with an assumption that through 40kg fresh milk at least 35kg of yogurt is obtained." He, however, claimed that retailers would not increase milk prices in Ramazan.

According to him, retailers have also approached the Sindh High Court against the government's fresh move, challenging the latest notification on the basis of the 1997 Act.

Muhammad Rafeeque, the secretary-general of All Karachi Fresh Milk Wholesalers Association, agreed with the assertions and said that wholesalers were selling milk at "almost the notified prices".

He said that the fresh drive against was "unjustified".

Interestingly, there was no one to receive complains on a number mentioned in a banner set by the commissioner's office, District East. The district, according to sources, was responsible for controlling the price of milk in the city.

The new government rate will remain effective till November 30.