KARACHI: Milk retailers

Published March 13, 2005
KARACHI, March 12: Milk sellers in Karachi have announced a shutter down for March 15 and threatened to observe an indefinite strike if their problems were not resolved.

They have also declined to attend a meeting summoned by City Nazim Niamatullah Khan on the same day to sort out the issue of milk prices. Besides retailers, the city nazim has invited wholesalers and dairy farmers to the meeting to find an amicable solution to the lingering problem.

Vice-President of the milk retailers? association Mohammad Fayaz told Dawn on Saturday that more than 1,500 retail outlets in Karachi would remain closed from dawn to dusk on Tuesday.

He pointed out that the association had staged a protest demonstration outside the Karachi Press Club on Saturday against the city government?s attitude.

?For the last 11 days, we are suffering losses by selling milk at Rs25 per litre after getting it from dairy farmers at Rs26.75 per litre,? he said, adding that the city government had resorted to arresting retailers without realizing the fact that the rates had actually been raised by wholesalers and dairy farmers.

He warned that the March 15 strike would continue indefinitely if the uncalled for action by the city government did not stop and the genuine demands of milk retailers were not met.

Meanwhile, another 23 milk retailers were picked up from various parts of the city on Saturday for overcharging. In the earlier raids, 22 retailers were rounded up.

Mr Fayaz pointed out that wholesalers and dairy farmers had held out the assurance that they would not increase milk rates before a consensus on prices among all the stakeholders was evolved. However, he added, they raised the prices without taking retailers and other stakeholders into confidence.

Regarding the city government?s stand, he said the report prepared by the government?s representatives in the joint committee on prices contained many errors with regard to facts and figures. For instance, he pointed out, the report put labour charges at Rs1,300 whereas the actual cost was Rs3,000. Similarly, the report showed transportation charges as 40 paisa per litre as against the actual cost i.e. 75 paisa per litre.

A city government official said that the city nazim had also invited public representatives to the March 15 meeting. He said that hopefully the meeting would succeed in finding an amicable solution to the problem. However, he said the government would try its best to dissuade dairy farmers, wholesalers and retailers from increasing the rates, i.e. Rs22 (wholesale) and Rs24 (retail) per litre.

Sources indicated that the high-ups in the city government appeared highly concerned over the reluctance being shown by DDOs (Revenue) in controlling prices. None of the 18 town nazims, who are supposed to keep a check on prices of essential commodities in the interest of general public, also appeared indifferent towards the situation, according to the sources.

Earlier this month, retailers increased milk prices from Rs22 to Rs28 per litre triggering an uproar by consumers who maintained that the increase of Rs6 per litre could not be justified at all.

The city government, taking cognizance of the situation, constituted a committee comprising officials of the city government, dairy farmers, wholesalers and retailers to finalize a reasonable price structure. However, several rounds of talks held so far among the stakeholders have produced no results.

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