After khula doodh, packaged milk prices swell by six rupees

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Not ones to be left behind doodh wallas when it comes to reaping profits, companies selling packaged milk have unilaterally increased prices by at least six rupees per litre, Pakistan Today has learnt. A one-litre package of Olper’s Milk now costs Rs 76 – an increase of six rupees – while the price of a one-and-a-half litre package has been revised to Rs 108 from Rs 98. The new prices have been notified by the company through a price list, which claims that the increase has been enforced from May 3, 2011.
Olper’s are not the only ones to have increased prices: Milk Pak, Haleeb, and Pakola Milk are among the other giants who have followed suit. Packaged milk sales have witnessed a steady growth across the country, with many losing faith in the low-quality fresh milk sold by common doodh wallas. Consumers argue that they are safe in the knowledge of packaged milk not being adulterated with water or other material. But consumers remain confused about whether this recent increase has notified by the companies, or if it is being arbitrarily raised by vendors. The primary reason for this sentiment, consumers argue, is that the prices are not printed on most packages sold by these companies.
On the other hand, sources told Pakistan Today that companies selling packaged milk were allowed at least 10 percent increase in price by the government in lieu of packing and transportation charges, but consumers were being charged more than 10 percent in terms of selling price. Consumers though continue being fleeced by sellers of fresh milk, who have to pay at least Rs 66 per litre as opposed to the Rs 60 price set by the city government. In the absence of any administrative control over milk prices, other dairy products are also being sold at inflated rates: yogurt, for example, is being sold at Rs 88 per kilogramme as opposed to the rate of Rs 80.
Sources said that wholesalers were selling fresh milk to retailers at the rate of Rs 2,280 per 40 litres. By that calculation, the per litre price of fresh milk amounts to Rs 57 but fresh milk is being sold at Rs 66 – a nine-rupee profit on every litre sold. “Wholesalers are making an additional profit of Rs 3 per litre, as the government has fixed the wholesale rate at Rs 55 per litre,” sources said.