KARACHI, April 13: While the city government appeared firm to force milk retailers to strictly comply with the official rate of Rs34 per litre, the dairy farmers, wholesalers and retailers have warned that the “policy of coercion” is causing great harm to the dairy sector.

“Uncertainty and fear rule the market; no new investment is forthcoming; rather milk traders are left with no option but to withdraw their investments from the business,” major market players observed, predicting that the city government’s strategy to provide “fake relief” to consumers was bound to fail.

Most of them were of the view that the city could face an acute shortage of milk in coming months if the situation persisted. Jamil Memon, a dairy farmer, said: “Every farmer brings in some new animals every month to avoid the loss of dry animals and ensure a smooth supply of milk to the middleman, with whom he makes a yearly contract. For instance, a farmer with 100 buffaloes needs 10 new animals every month to send the dry ones to slaughter house as soon as they stop milk production after 10 months.”

While the slaughtering has been causing a huge loss of valuable breeds over the decades, it is also one of the major reasons behind the unavoidable hike in milk prices. Along with the increase in feed cost, this factor pushes animal prices up constantly.

Deploring what he described as “the city government’s highhandedness”, a representative of milk wholesalers, Haji Ishrat Khan, said the CDGK treatment was forcing milk traders to stop their business and divert their investment to some other trade.

“How can you expect us to sell milk at Rs34 per litre after buying it at Rs37.5 per litre? My shop was twice raided by a team of the “community police” for selling milk at higher rates. There was no magistrate or city government official accompanying them. The police used filthy language and beat up the shop workers. After confiscating the milk, they distributed it among people free of cost. They also took away one of the workers along with the entire day’s sale of Rs50,000 to Rs60,000. The workers were later released on payment of Rs3,000…” he said.

Shaukhat Mukhtar of the Karachi Dairy Farmers Association believes that the city government has no right to fix open market’s rates.

“The rates should be determined according to the supply and demand formula. Is anybody controlling the rates of fruit, vegetables or poultry? Only new investment and the consequent market competition can bring the prices of any commodity down.”

A city government official, Dr Shahab Imam, termed the complaints about the raiding teams and manhandling of workers “a pack of lies”.