KARACHI, Feb 28: Consumers will continue to pay Rs 25-28 a litre as no headway could be made in the talks between the city government, retailers and wholesalers. Instead, a committee has been set up to resolve the crisis.

The committee will work out the exact cost of milk, expenditure being incurred on procurement of milk and to review the problems of retailers and wholesalers, besides finding whether the prices enhanced by the dairy farmers and wholesalers were justified or not.

Comprising city government officials, retailers and wholesalers, the committee will submit its suggestions within a week to City Nazim, Naimatullah Khan, after ascertaining the views and suggestions of the market forces, based on ground reality and analysis of all factors for determining the cost of fresh milk.

The committee has been formed by the City Nazim during a meeting held between the stakeholders of the milk business and the city government officials. The meeting was presided over by City Nazim at his residence.

A senior city government official claimed that the retailers and wholesalers have agreed to sell milk at previous rate of Rs 22 per litre for another one week till a final decision is taken in the light of committee's report.

It was also decided that the on-going crackdown on retailers would be suspended for a week and no arrests would be made till the submission of the report by the committee. However, dairy farmers did not confirm that any understanding had been reached in the meeting. It is unlikely that the milk retailers would sell milk at official rate of Rs 22 per litre as they had already been selling it at Rs 25 a litre for the last one year.

The claim of a city government official that 90 per cent of the shops are selling milk at old rates has also virtually proved futile as a majority of milk sellers are charging Rs 25 per a litre in various areas.

In real sense, the price checking campaign has fizzled out. Market sources said that many milk retailers are prepared to charge Rs 28 per litre from Tuesday, while some retailers are likely to maintain the price of Rs 25 till a final decision is taken.

A city government official said that City Nazim had also assured the stakeholders that the on-going crackdown on milk retailers can be suspended if rates were brought to previous levels of Rs 22 a litre.

The Nazim also requested the dairy farmers to ensure that the milk is sold at Rs 22 per litre. He said retailers and shopkeepers would not be allowed to charge rates at their whims. The government, he said, wants to resolve the crisis through dialogue and in a peaceful atmosphere. He said that the government prefers the consumers' interest.

District Coordination Officer Fazlur Rahman said that the crackdown on the profiteers had been initiated on the instructions of City Nazim and the government wants to find out a solution through a dialogue.

Muslim Pervaiz, senior presiding officer of City Council and EDO Raeesuddin Paracha, has been named convenor and secretary of the committee. Members of the committee are advocate Saifuddin, two representatives of dairy farmers and a representative of consumer side.

According to general secretary of Dairy Farmers Association (DFA), Abdul Hameed Wakil, the committee would take stock of the real situation. He said that Section 144 imposed last week for price checking, had come to an end on Saturday but the arrest and warnings to retailers continued unabated.

A total of 11 retailers were arrested on Monday while 238 have been given warnings for overcharging. It is also unclear as to what action would be taken by the city government next.

The on-going row between the City government and milkmen reminds one of the intense tussle between the price regulators and meat merchants previously in which the ultimate losers were the consumers who are still paying high price of meat.

The city government had been clamouring over magisterial powers for its officers, attributing it as the main hurdle in bringing desired results of the entire crackdown on profiteers. However, it seems that something had been settled secretly between price regulators and market forces during the price checking campaigns which were launched intensely and which ended in a failure.