KARACHI, Jan 3: The new year started off with a shock to consumers as one of leading packers of tetra milk pushed up the rate of one litre pack to Rs55 from Rs54, effective from Monday, and sugar became costlier by Rs2 to Rs36 per kg.

The maker of Milk Pack had increased the rate of one-litre pack by Rs4 in October 2008.

Karachi Retail Grocers Group General Secretary Farid Qureishi said that the quarter pack would now cost Rs16 as against Rs15. Other companies would follow the suit shortly.

Producers of tetra milk had pushed up the prices of their products by Rs2 on a litre pack in August 1, 2008 besides raising Rs2 and Re1 each on half and quarter packs.Like past practice, Milk Pack has only issued the new price list to retailers without mentioning any reason for price hike.

It is strange that when the transportation cost has come down after frequent cut in petroleum prices, the producers of tetra pack have been active in pushing up the rate.

In June 2005, the litre pack was available at Rs29. In March 2006, the price was increased to Rs36 followed by another hike, pushing it to Rs37 in September 2006. In September 2007, the producers had increased the rate to Rs44 from Rs42. However the rate of Rs44 remained intact till February 2008.

Owing to frequent surge in demand, the tetra milk makers have been fully utilising the situation by persistently increasing prices.

The city government in February 2007 had asked the multinational milk producers to furnish details of the cost incurred on their milk packs in order to determine the cost so as to prepare a policy to regulate its prices. The MNCs were also pressed for the printing of retail prices on the packs coupled with production and expiry dates. However, till today, the retail price is still not printed on the packs though the date of manufacture and expiry is printed.

The city government had made another effort in April 2008 to control the prices of tetra milk. The Enterprise and Investment Promotion (E&IP) Department of the city government had asked the tetra milk producers to mention the law under which they fixed and regulated prices.

In reply the tetra milk producers served a legal notice on the E&IP department, saying that the commodity did not come in the purview of essential commodities and the E&IP had no right to check its prices.

Commenting on sugar, chairman Karachi Wholesalers’ Grocers Association Anis Majeed said sugar’s wholesale rate soared to Rs35.50 per kg from Rs34.50 two days back. Earlier in December 2008, the wholesale rate was Rs31.50 per kg.

He linked the price to some shortage of sugarcane and increase in its price to Rs100 from Rs81 per maund.

In detergents, maker of Aerial powder had increased the rate of its one-kg pouch to Rs265 from Rs230.