KARACHI Consumers continue to receive pre-budget shocks as distributors of a leading powdered milk producer have informed retailers about new enhanced prices.
Many retailers had started charging Rs425 for Nido one-kg pack as compared to Rs390. The 400-gram pack at retail level now cost Rs200 as compared to Rs180. Retailers said that the distributors of the multinational company had communicated them about increase in wholesale rate to Rs391 from Rs368 for one-kg pack and Rs182 from Rs165 for 400-gram pack from May 1.
They said that the retail price of Nido Plus 1 and 3 (400 grams) for children had been raised to Rs250 from Rs220. Its wholesale rate had been enhanced to Rs231 from Rs204.
Meanwhile, Karachi Retail Grocers Group (KRGG) General Secretary Farid Qureishi said that so far the company had not issued any price list, but distributors had been informing the retailers about the new rates.
This is the third increase in prices of various varieties of milk in the last two months.
Leading tetra milk producers had already raised the prices in April by Rs4 to Rs62 from Rs58 on one litre pack. On March 1, fresh milk producers had given a jerk to the consumers by pushing up the rates by Rs4 per litre.
The multinational companies do not print the prices on the tetra and powdered milk packs thus putting the consumers in the dark regarding the actual retail price. Retailers charge different prices as per their old and new customers.
Farid Qureishi said in January 2008, Nido one litre pack was available at Rs310, surging to Rs320 in June and Rs340 in October. In 2009, the company had enhanced the rates to Rs390 in June.
He recalled that one litre tetra milk pack in June 2005 was available at Rs29, rising to Rs36 in March 2006, Rs44 in September 2007 and Rs54 in October 2008.
He said the federal government appeared least bothered about the persistent increase in powdered and tetra milk prices in the last few years especially ahead of budget.
The Pakistan Dairy Association (PDA), an association of the registered entities of the dairy sector, has been running a media campaign against imposition of value added tax (VAT) on dairy products and milk, saying that one million associated people and farmers in the industry will have no future and the country will have to import dairy products as VAT will retard the growth of packaged dairy industry.
The formal and documented packaged dairy sector is only three per cent whereas informal loose milk economy comprises 97 per cent.
The campaign shows that the sector will be on the verge of collapse if VAT is imposed, however it cannot be overlooked that the way the packaged dairy sector has raised the prices in the last few years on rising demand.
