KARACHI: Despite drop in transportation cost after cut in diesel and LPG rates and stability in exchange rates for the last seven months, a number of big companies selling packaged milk have announced price hikes.

For example, Fauji Foods Limited has jacked up the price of one litre pack of Nurpur brand to Rs300 from Rs280 effective from May 15, 2024 followed by a jump in 1.5 litre pack to Rs425 from Rs395.

Friesland Campina Engro Pakistan Limited has informed the market dealers about an increase in one litre pack rate to Rs295 from Rs280 effective from June 1, 2024.

It is seen that big milk companies always increase prices within a few days of interval, without citing any reason in their price notifications distributed to market retailers.

Loose milk price violation

A number of milk shops in the city have also increased milk price from the official rate of Rs200, which was fixed by the commissioner, to Rs210-220 per litre and also started to close their businesses after 9pm in the metropolis.

Authorities claim to have taken action against 84 retailers for selling loose milk at excessive rates in city

Milk demand usually crawls up during May to July due to increased consumption of lassi, ice cream and kulfi.

A retailer said it was hard to keep selling milk at the control rate of Rs200 per litre.

Spokesperson of the All Karachi Milk Retailers and Welfare Association Waheed Gaddi said that the commissioner of Karachi’s wholesale rate was Rs188 per litre, which was fixed in the first week of October 2023.

“There is an agreement signed between retailers and wholesalers on January 1, 2024 binding retailers to get milk at control rates, but recently the wholesalers have pushed up the rate to Rs198 per litre,” he claimed.

Those retailers who could not sustain the sale of milk by procuring it at higher wholesale rates from the open market closed down the sales, he added.

However, a number of retailers are offering loose milk below Rs200 per litre.

Mr Waheed explained that the low rate milk could not be defined as quality milk which contained only 3.5 per cent fat besides extra water and powdered milk.

He claimed that the milk selling at Rs200 per litre contained six per cent fat content.

Action against profiteering

On Tuesday, Karachi Commissioner Hasan Naqvi chaired a weekly meeting to review the action to curb profiteering in the metropolis.

The meeting was informed that the district administration had taken action against 84 retailers and imposed a collective fine of Rs899,000 on them for selling milk on exorbitant prices.

The commissioner was informed that strict action had been taken against 460 shopkeepers during the past one week and total Rs3.3 million fines were imposed on them. As many as 20 shops were sealed for violation of official price list.

The commissioner directed the authorities to take all-out measures to ensure availability of quality edible items on official prices.

Published in Dawn, May 29th, 2024