KARACHI, Jan 5: Following a stormy session, representatives of dairy farmers, wholesalers and retailers have agreed to sell milk on Rs28 per litre for 10 days and during this period a committee would determine new milk prices.

A decision to this effect was taken at a meeting called by City Nazim Mustafa Kamal at his office on Friday in which representatives of milk-sellers’ bodies presented their views on sudden rise in milk prices.

The milk-sellers were of the view that milk price might reach Rs40 per litre in the months to come. At one stage they also threatened to go on strike if their demands were not met.

The aggressive tone of milk-sellers annoyed the city nazim, who declared to maintain the writ of his government and asked the participants that if they wanted to go on strike then there was no need of holding negotiations and they should leave the meeting room. However, none of the participants left the meeting room.

During the meeting the representatives of dairy farmers, wholesalers and retailers traded allegations regarding hike in milk prices. Dairy farmers said that the rise in milk price was due to increase in prices of fodder, as the government had failed in monitoring the fodder prices.

The representatives of retailers informed the city nazim that they had increased milk price as they were getting milk from wholesalers and dairy farmers at exorbitant rates. They said that some 1,700 retailers had been fined and some of them were arrested and sent to prison for overcharging.

The nazim maintained that retailers and Karachiites would not purchase milk on high prices from wholesalers and his government would not allow milk-sellers to fleece the citizens. He said that the wholesalers would have no option but to sell milk on cheap rates if the retailers and people decide not to purchase milk on exorbitant rates.

Mr Kamal said that anyone found selling milk above the government rate would be punished. “My job is to protect the interests of the people and no one would be allowed to challenge government’s authority,” he added.

It was pointed out in the meeting that the resent upsurge in milk prices was due to the role of middlemen. The nazim, in consensus with all stakeholders, announced to abolish the role of middleman from the milk-selling business on which all the representatives agreed. He said that the profit being earned by the middlemen should be transferred to people.

The nazim also offered wholesalers to sell milk in the local markets as retailers and the city government would extend full cooperation with them in this regard.

He formed a six-member committee, comprising representatives of wholesalers and retailers; EDO Enterprises and Investment Promotion; representatives of consumers and media, which would survey the market and submit its report within 10 days to determine new milk prices. The nazim made it clear that the retailers would sell milk on Rs28 per litre till the submission of the committee’s report.

The meeting was attended by DCO Karachi Fazlur Rehman, EDO E&IP Hassan Naqvi, EDO Municipal Services Masood Alam, representatives of milk-sellers’ bodies including wholesalers and retailers.