KARACHI, July 2: The Sindh High Court asked the city district government (CDGK) on Monday to fix the milk price in accordance with the provisions of the relevant law and report back to it within two weeks. There will be no change in the retail price of Rs32 per litre in the meantime.

The petitioner milk-sellers had challenged the initial retail price of Rs30 per litre as unfair and unreasonable. Their counsel, Advocates Naimur Rahman and Abdur Rahman, argued that the city district government had failed to properly work out the production cost and regulate the price charged by the producers or dairy farmers from the wholesalers. In any case, the CDGK had no authority under the Sindh Essential Commodities Price Control and Prevention of Profiteering and Hoarding Act, 2006.

The enactment, they said, empowered only the provincial government, though it could delegate its powers to the local authorities. However, there was notification in the field delegating the price control powers to the CDGk. Besides, the counsel said, according to a committee appointed by the provincial livestock department, it cost the dairy farmers Rs 33 per litre to produce the commodity and a reasonable retail price ensuring profit at the various levels should not be below Rs 36 per litre. They said the price should be revised and re-fixed quarterly and should be linked to the rate of inflation.

Appearing for the CDGK, Advocate Manzoor Ahmad argued that the 2006 Act provided for delegation of powers and the matter fell squarely within the domain of local authorities.

The price had been fixed under the provincial government’s authority. The purpose was to safeguard the public interest as consumers of the essential commodity were being charged excessive prices, which were being raised at will every now and then. The production cost was Rs 28 per litre and not Rs 33 as claimed by the petitioners, the CDGK counsel said.

The court earlier asked the CDGK to hold a meeting of all stakeholders and fix a reasonable price after addressing their concerns also and in consultation with them. The CDGK called a meeting of the retailers, wholesalers and dairy farmers and enhanced the price to Rs 32 per litre and the wholesale price to Rs 30 per litre.

The petitioners were asked to charge the new price by an interim order of the court. The price revised was also not acceptable to the petitioners and they challenged the CDGK claim that it was the result of a compromise settlement. Lengthy arguments ensued and there was no agreement between the parties.

A division bench headed by Justice Sarmad Jalal Osmany passed another interim order on Monday remanding the matter to the CDGK to carry out a fresh exercise and issue another notification dealing with price at all the stages, including production. The DCO should be notified as the price control officer under the 2006 enactment to enable him to issue a price notification. The entire exercise should be completed within two weeks and a report be submitted to the court, the interim order said.