KARACHI, March 4: Confusion has gripped the market regarding the fixing of milk prices after a final market survey report, prepared and conducted by a committee on the instructions of the city nazim to evaluate and work out the prices of fresh milk, is submitted on Saturday.

The committee, comprising senior city government officials and stakeholders, is expected to present its report to the District Coordination Officer. New rates will be fixed on the recommendations of the committee based on market surveys and by comparing different factors involved in determining the production cost of milk per litre.

However, an important member of the committee - the Dairy Farmers Association of Karachi -created a stir in the market on Friday, just a day before the report submission.

The association's general secretary, Abdul Hameed Vakeel, has shown his dissatisfaction over the visit of committee members to the cattle colony on March 3. In a statement, he claimed that the committee members had collected one-sided information. He feared the finding of the survey was not impartial and justified.

Vakeel called for setting up a new committee also including the consummate connoisseur from the federal, provincial and city governments, and the ministry of livestock, while imploring them to attend the meeting to be held on Saturday.

"If the price of milk is not fixed accurately as per cost of production of milk, the entire industry will shut down, rendering millions of dairy farmers jobless," he said.

It is not clear as to how the city nazim, Niamatullah Khan, will respond to the committee's report in case it suggests an increase in milk price from the present rate of Rs25 a litre, or if it proposes a price between Rs25-28 per litre.

Market people think if the milk price is increased, based on the report's findings, it would reflect that some secret deal had been struck between the city government officials and stakeholders in the milk business.

In case the price is fixed between Rs25-28 per litre it would also create apprehensions among the general public. And, if the price of milk is fixed on the lower side then consumers will assume the city government has done its homework efficiently.

Besides, many people have expressed anger that the committee does not have any representation from the general public or any consumer body. In the meantime, the city nazim, Niamatullah Khan on March 2 extended Section 144 CrPC for another 30 days. This prohibits milk sellers from selling milk at higher rates.

One of the city government officials said an extension of 30 days meant that the price regulators appeared firm by not allowing milk rates to go up in the future, and that they may take stern action this time in dealing with profiteers.

Meanwhile, the watchdog body of the city government on Friday conducted raids on milk sellers' shops in various parts of the city issuing warnings to 87 milk sellers for selling milk above the prescribed rate, adds PPI.

Warning were issued to three in Bin Qasim town; four in New Karachi; five each in Gulberg, Baldia and SITE; six each in Lyari and Jamshed; seven each in Orangi, Malir, Liaquatabad and Keamari; eight each in North Nazimabad and Gulshan; and nine in Landhi towns.