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Why Pakistani Milk Prices Have Been Fluctuating

23 May 2007

PAKISTAN - The City District Government (CDGK) may be over-simplifying the situation when it claims that retailers are behind the current price rise in milk, The News has learnt.

Milk prices have been rising unchecked in Karachi over the past few months. While this has been a source of distress for citizens, there are many who argue that it is not the retailers who are to blame for the spiral.

While the CDGK insists that the retailers are indulging in profiteering, investigations by The News say that it is not as simple as that. The retailers have been charging higher prices also to make up for their costs, including the cost at which milk is bought. As reported earlier, everyone who is associated with the entire milk industry from the farm, down to the main market, which includes dairy farmers, wholesalers (middlemen), and retailers, all provide their own justification for the raising prices.

This is not to mention that all price hikes are not arbitrary in nature. In some instances where this has been the case, the culprits are mainly dairy farmers. Primarily, however, it is the price of fodder along with the maintenance of the cattle stock that has affected and is bound to continue to affect the price of the milk eventually sold in the market, say analysts.

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Source: The News - International



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