Milk Price Increase and Reality
Milk Price Increase | Why not increase in the price of milk ? | تو پھر دودھ کی قیمت میں اضافہ کیوں نہیں؟ ۔۔ مضامینِ نو، ڈاکٹر محمد جاسر آفتاب
دودھ کی فی لٹر قیمت 220 روپے ہونے کا عندیہ، پیداواری لاگت جاری
Animals… fodder, straw, grains, bran and husks for their feed… medicines for their treatment… diesel for transportation… land for housing them… electricity and water for their upkeep… and sugar, rice, flour, petrol, medicines and other essential household items for those who care for them—all have become more expensive.
If the prices of all these essentials have increased, then why is the price of milk not increasing? If there is no government control over the prices of these inputs, then how can there be strict control over the price of milk?
Price Capping Is Restricting the Livestock Sector
The livestock sector has supported Pakistan’s economy during every difficult period and continues to do so today. It is one of the pillars of the national economy and a guarantor of national food security. However, continuous milk price capping has prevented this sector from developing to its full potential.
When there is no regulation on the prices of livestock inputs, imposing price controls only on livestock products is difficult to justify.
The example of the poultry sector is before us. Poultry prices operate under a free-market system based on demand and supply. Prices adjust automatically, and today poultry has become one of Pakistan’s largest and most developed industries.
Karachi’s Milk Market Has Its Own Economic Model
Karachi is Pakistan’s largest milk market. For decades, the surrounding cattle colonies have supplied fresh milk to the city.
Dairy farming in Karachi is very different from dairy farming in Punjab. Its economic model is unique, and therefore the price of milk in Karachi cannot be compared with milk prices in Punjab.
The actual cost of milk production in Karachi should only be calculated through real production data and local economic realities.
Milk Quality Should Also Determine Milk Price
Milk pricing should not be based only on quantity but also on quality.
The recommendation made by SMEDA to determine milk prices according to fat content deserves serious consideration.
If milk containing 3.5% fat can sell for Rs. 140–150 per litre, then why should milk containing more than 6% fat be sold for only Rs. 120 per litre?
Quality-based pricing would benefit both producers and consumers.
Farmers Are Under Severe Financial Pressure
Dairy farmers are already facing difficult conditions, particularly in Karachi, where milk production functions more as a commercial business than traditional farming.
Investors manage dairy farms according to business principles. While inflation naturally increased the cost of milk production, the economic disruptions caused by the COVID-19 lockdown further damaged dairy farming. For dairy farmers in Karachi, maintaining continuity of the production cycle has become one of the biggest concerns.
Consumer Rights Mean Quality, Not Artificially Low Prices
Consumer rights organizations play an important role, and consumer rights must always be protected.
However, the consumer’s real right is not merely cheap products—it is quality products.
Illegal profiteering should certainly be punished wherever it exists, but accusing farmers of profiteering without proper research and evidence is neither fair nor constructive.
Milk Price Should Be Based on Production Costs
There are only three reasonable approaches:
- Conduct an independent calculation of production costs with the assistance of experts.
- Calculate production costs jointly with dairy farmers.
- Critically evaluate the production cost figures presented by genuine dairy farmers.
If milk prices exceed reasonable profit margins after such analysis, then allegations of profiteering become justified.
However, making such accusations merely to gain administrative approval or public attention serves neither farmers nor consumers.
If dairy farmers become bankrupt or leave the business, cities will eventually face milk shortages, and fake milk will become the inevitable alternative.
Focus on Fake Milk Instead of Targeting Farmers
Organized campaigns frequently emerge calling for boycotts of milk, fruits and vegetables whenever prices increase.
Instead of limiting public debate to milk prices, equal attention should be given to investigating fake milk, synthetic milk and other adulterated dairy products being sold in attractive packaging. Public awareness on this issue deserves far greater attention.
Reality of Buffalo Colony and Milk Price
I respectfully request the Commissioner Karachi to spend a few hours in Karachi’s Buffalo Colony.
Observe the production system personally. Understand its economic model before deciding whether crackdowns will benefit or damage the sector.
Sealing shops, imposing heavy fines or forcing unrealistic milk prices cannot solve the problem.
Milk Price Policy Needs Reform
Continuing the current policy will eventually push Karachi towards widespread consumption of fake milk.
A better solution would be either:
- Allow milk to be sold under a free-market system based on demand and supply, or
- Determine the milk price through consultation with all stakeholders while considering production costs, inflation and market realities.
Such an approach would be fairer, more sustainable and beneficial for dairy farmers, consumers and the country’s livestock sector alike.
