ISLAMABAD, July 20: Dairy products have joined the core commodities which have been receding away from the reach of the common man because of the rising inflation, primarily fuelled by higher energy costs.
Prices of loose milk and yogurt have also touched their all-time high in the federal capital following the continual rise in the prices of packed milk and yogurt for many months despite Prime Minister Syed Yousuf Raza Gilani’s announcement in his first speech in the National Assembly on taking the office that sales tax was being withdrawn from all packaged food.
Now loose milk is being sold for Rs40 per litre in most markets against its previous rate of Rs32, and yogurt at Rs50 per kilogramme against Rs40.
Packed milk was being sold for Rs48 per litre for many weeks in all markets.
Observers point out that milkmen usually increase the prices of their products when the multi-national and local companies raise the rates of their dairy products.
Ironically, the fresh increase was made without the approval of the local administration, prompting the consumers to criticise both the milkmen and the authorities.
Milkmen in G-11/2 market and G-9/4 market are selling milk at Rs32-34 per litre and yogurt at Rs50 per kilogramme.
It has been observed that milkmen in Islamabad increased the prices of milk and yogurt twice in two months, taking them from Rs30 and Rs35, respectively, to new highs.
Since there exists no effective check on the prices of consumer items in Islamabad, the price spiral continues to rise.
The District Price Control Committee appears to be helpless in overcoming this problem.
Some milkmen told Dawn that the rapid jump was triggered by the consistent upward trend in the rates of electricity, petrol, fodder, transportation charges, etc.
Milkmen Mohammad Arshad and Niazullah offered another explanation.
They said in summer buffaloes and cows produce less milk, causing a shortage of the commodity and consequent increase in its rates.
The prices of milk and yogurt have gone up almost by 80 to 90 per cent in last three years. In 2005 the rate of milk was Rs20 per litre and yogurt Rs28 per kilogramme.
Some milkmen running small shops by purchasing milk from cattle pens complained that they were getting the commodity at higher rates, which compelled them to sell milk and yogurt with a profit margin of Rs2 to Rs3.
They said major portion of milk production in the country was procured by companies marketing packed milk. Multinational companies doing the dairy business charge inflated price for their packed products in the name of hygienic processing and their long shelf-life.
At least the latter quality benefits the companies’ export business rather than their local consumers as packed milk distributed in Pakistan does not need to have long shelf-life.