Tetra milk price raised by Rs4 per litre

KARACHI: A leading tetra milk producer has given a pre-budget shock to its consumers by pushing up the price of one-litre pack by Rs4 to Rs62.

After announcing price hike by the main player other producers will follow suit shortly.

Karachi Retail Grocers Group (KRGG) General Secretary Farid Qureishi said the distributors of Milk Pak had communicated retailers about the new price, which will be effective from April 15, so that they could clear their existing stocks.

He said the company’s distributors did not give any reason for the price hike. Earlier the tetra milk producer had increased the price to Rs58 from Rs55 per litre in July 2009.

Mr Farid urged the government to take serious notice of wave of price spiral in almost all commodities ahead the announcement of budget for fiscal year 2010-11.

In June 2005, the one-litre milk pack was available at Rs29. In March 2006, the price was increased to Rs36 followed by another hike to Rs37 in September 2006. In Sept 2007, the tetra milk producers had jacked up price to Rs44 from Rs42. However, the rate of Rs44 remained intact till February/March 2008.

In August 2008, the tetra milk producers had increased the rate by Rs2 per litre. In October 2008, the rate surged to Rs54 from Rs50 per litre.

On March 1, 2010, consumers received a severe jerk following increase in fresh milk price by Rs4 per litre to Rs52. This price hike made by dairy farmers and retailers went unnoticed.

As there is no government authority to regulate and monitor the prices of essential commodities especially food items, the producers and market players are fully exploiting the situation by jacking up prices on their own.

In Feb 2007, the City District Government Karachi (CDGK) in a bid to regulate prices had directed the multinational tetra milk producers to furnish details of the cost incurred on milk packs. The MNCs were also pressed for the printing of retail prices on the packs with the production and expiry dates.

The retail price is still not printed on the tetra packs though the dates of manufacture and expiry are there.

In another effort in April 2007, the city government had asked the tetra milk producers to mention the law under which they were fixing prices. Instead furnishing details sought, the tetra milk producers had served a legal notice on the Enterprise and Investment Promotion Department of CDGK saying that the commodity did not come in the purview of essential commodities and the E&IP had no right to check its prices.

After 2007, no serious efforts were made by the city government to control the prices of tetra milk.

Hectic media campaign against fresh milk producers on hygienic issues by the tetra milk producers has pushed up demand of packed milk despite the fact that it has less nutrition value than fresh milk.

As now the CDGK is being run by the administrators there is no hope for the consumers to see any respite in prices unless elections for forming new city government are held.