After sugar it is now, perhaps, time to increase milk prices at the retail level from Rs 24 to Rs 28 per litre - by four rupees at an average - if the prices of animal feed would not come down or checked by the government, milk wholesalers said on Wednesday.
They said that the prices of fodder and animal feed needed for milch animals have gone up by more than 25 to 30 percent, making it difficult to adequately feed the animals and supply milk at Rs 750 to Rs 800 per 40 litres.
The cattle pens owners said that because of poor quality of the feed, and diseases, milk production has substantially gone down. Mortality in buffaloes, as compared to cows, has also increased due to substandard animal medicines and inability of vets in finding out causes of diseases.
They said that from February 6, 2006, prices of pack milk have already been increased by Re 1 per litre-pack and Rs 1.5 per 1.5-litre pack. But, they added, the government did not seem to have noticed the increase. Yet, the consumers have accepted the increase and there is no fall in pack-milk sales.
The fresh milk retailers in some of the posh areas have begun selling milk at Rs 26 and Rs 28 per litre and the same is likely to happen in other areas.
Retailers said that they were under pressure from the wholesalers to increase the price by Rs 5 per litre in one go across the board and adjust the prices of yogurt, similarly.
Market sources said that importers of popular brands of powdered milk are also in the habit of adjusting their prices and once the prices of fresh milk at the retail level would go up, there would be increase in prices of powdered milk, too.