Retailers urge CDGK to take action against wholesalers: milk price Rs 31/litre

02 Feb, 2007

The milk retailers are in cross with the wholesalers over the increased price of the commodity that has created supply-shortage for the consumers in metropolis.
Retailers warned that if the current situation further continued, the milk price would be increased to Rs 35 per liter and demanded of the City District Government Karachi (CDGK) should take brisk action against the wholesalers to bring the milk price down in line with the official rates.
Earlier, City Nazim Syed Mustafa Kamal took serious action against the milk sellers and asked them to readjust milk prices in line with the official ones, namely at Rs 28 per liter in the retail market and Rs 26 per liter in the wholesale market. City Nazim also constituted a committee to probe into the milk price hike. Both retailers and wholesalers had endorsed the official price list of milk issued by CDGK.
The proposed committee has failed to come up with fruitful recommendations to help the CDGK draw the new official milk price list with a view to resolve the conflict between the wholesalers and retailers on permanent basis, in addition to continuing milk supply to general public on a regular basis and on reasonable price. The committee had to submit its report within ten days from the date of its formation, while its announcement was made on January 5.
The issue emerged only due to lack of initiation in price fixation by CDGK because the committee had not yet recommended its price list, which would be binding on all parties.
Representative of milk retailers association, Hafiz Nisar Gadi alleged the wholesalers for providing milk on increased price, which was Rs 31 per liter. He said that retailers had not stopped selling milk, and were committed to continue their business. He held the insufficient milk supply to retailers from the dairy farmers as a chief hurdle in the milk scarcity causing serious problems in its acquisition to general public in the metropolis.
Hafiz warned that if CDGK failed to take action against the wholesalers in bringing the milk price down, the milk retailers would arbitrarily increase its price to Rs 35 per liter across the city. "We have been suffering million of rupees monthly because milk is being sold at lower rates than its purchasing price which is higher," he added.
On the contrary, representative of dairy farmer association, Haji Akhtar accused the retailers for stopping milk sale to general public on official rates. He said that government should provide wholesalers with 'spots' wherefore they could sell milk at official price ie, Rs 28 per liter. "We, dairy farmers are ready to sell milk on official prices also in the retail market, and demanding of CDGK to facilitate us in this regard," he maintained.
He said that milk in the wholesale market was available in a sufficient quantity and asserted that dairy farmers would leave no stone unturned to fail the retailers' strike. He said that milk was still being sold at Rs 25 per liter in the wholesale market and retailers' claims of milk shortage and high price were false. Akhtar charged the retailers for adulteration in milk with water and said that they had earned millions of rupees through such malpractice's.

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