KARACHI, April 25: Another milk crisis seems to be brewing as a retailers’ association has given a four-day deadline to the city government to resolve the milk pricing issue which, they claim, has been causing huge losses to milk-sellers for almost a month since dairy farmers continue to sell them milk at higher rates.

On the other side, a sense of discontentment prevails amongst the majority of small dairy farmers, who feel they have been let down by their ‘bigwigs’ when they recently struck a secret undertaking with the CDGK over the control of Lea Market’s open market by compromising on the stand of increase in milk prices in proportion to the hike in the prices of feed and animals.

“We can’t bear losses month after month. If the city government continues to ignore the ground realities and refuses to allow a fair increase in prices, most of us will be forced to gradually sell our animals and invest in some other business,” said a dairy farmer, wishing not to be named.

Criticising the big dairy farmers holding different offices of an association, he said these farmers compromised the integrity of all those stakeholders who wanted to do business with honesty.

“The CDGK has returned the control of Lea Market’s open market to Haji Akhtar’s association under an undertaking that milk would be sold at Rs34. The association charges Rs5 to Rs10 per maund from all those selling milk in the open market,” he disclosed, adding that the representative association of dairy farmers didn’t take up the issue of milk prices at the recently held meeting with the city government officials.

“The association members know well that the cost of milk production varies between Rs36 and Rs38 depending upon the type of feed the farmers use. But under the prevailing circumstances, they are forced to sell milk at Rs32 to wholesalers and are suffering losses,” he said.

Talking to Dawn, Hafiz Nisar Gaddi of the All Karachi Milk Retailers Association said: “We are buying milk at higher rates and can’t continue with the losses any more. It has been almost a month since we are waiting, hoping for a positive outcome in the CDGK-dairy farmers’ parleys. But there has been no progress. We will wait till April 29 to see if there is any development. Or else the association will be free to decide the future course of action.”

Mr Gaddi hoped the Sindh High Court would decide the case on April 28 in their favour. Criticising the CDGK’s drive against retailers accused of selling milk at higher rates, he said this campaign was completely unjustified and was causing immense problems to “financially-crippled” milk sellers.

“The city government exercises no control on dairy farmers and wholesalers, while retailers are being continuously fined and jailed,” he complained.

Demand for feed at subsidised rates

Backing the demand for a proportionate increase in milk prices, Dr Baz Mohammad Junejo, the Additional Secretary Agriculture and former secretary livestock, said the CDGK must find a viable solution to the problem that didn’t compromise either the quality of milk or the future of thousands of people associated with the dairy industry.

“There should be a long and short term strategy to deal with the many factors involved in the fluctuating prices of milk. An immediate step, however, could be the provision of feed at subsidised rates to dairy farmers.”

He supported the dairy farmers’ claim about the increase in feed prices and expenses, but maintained that the major reason behind the continuous rise in milk prices was shortage of animals.

“The indiscriminate slaughter of dry animals and calves that has been going on for decades and the consequent rise in animal prices is the real cause of hike in milk and meat prices. The dry animals should be made productive again by sending them for grazing for a certain period while calves should be raised for meat requirements. This methodology would not only end shortages of milk and meat, it will also provide employment to a number of people,” he said.

Apart from that, he pointed out that the issues of hygiene and sanitation were important in improving milk production. And in this regard, he noted, the government must facilitate dairy farmers.

“Improving hygienic conditions at cattle pens has a direct link with milk production. Besides, the government should take measures to grow separate crops for animals being raised for milk and meat purposes. Farmers should also be provided with loans on easy terms so that they can invest in dairy and meat development.”