Karachi dairy farmers hint at increasing milk price

Dairy farmers in Karachi have expressed concerns over the administration’s imposition of double taxation on dairy animals, which could lead to an increase in the retail price of milk. Key points include:

1. Double Tax Collection:
   • The administration has increased the tax from Rs. 100 to Rs. 700 per animal in several areas like Gadap Town and Super Highway.
   • An additional tax of Rs. 400 per animal is being collected by the Ibrahim Hyderi Town administration.
   • Dairy farmers report paying an entry fee of Rs. 1,100 per animal.
2. Financial Impact:
   Dairy farmers argue that the increased tax burden makes it unsustainable to operate without raising milk prices, further burdening consumers.
3. Recent Price Adjustment:
   • In June 2023, the retail price of milk was raised to Rs. 220 per litre after negotiations between the Commissioner Karachi and the Dairy Farmers Association.
   • Wholesale and farm prices were set at Rs. 205 and Rs. 195 per litre, respectively.
4. Agreement with the Administration:
   • Dairy farmers agreed to sell milk at the official rates, promising no further price hikes until December 31, 2023.
   • They are also obligated to maintain milk quality and display official prices.
5. Contradictions Amid Petroleum Price Drop:
   Farmers had previously demanded a price hike even when petroleum product prices were reduced, leading to disputes over cost justification.

Implications:

• Consumers: The increased tax burden may translate into higher milk prices, impacting household budgets.
• Government: The administration must balance revenue collection with consumer protection and ensure compliance with the existing price agreement.
• Dairy Sector: Double taxation and higher costs could harm profitability, potentially reducing milk supply in the long term.

For ongoing developments, watch for updates from Karachi authorities and the Dairy Farmers Association.