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In Karachi, Pakistan, the prices of milk skyrocketed to PKR 210 per litre following approval from the city’s commissioner. This hike, a result of negotiations with the Dairy Farmers Association, sees a substantial increase of PKR 10 per litre, as reported by ARY News.
Earlier Speculations
Amidst growing concerns over inflation, speculation loomed regarding a potential PKR 50 per litre increase in milk prices. However, the recent decision by the commissioner has implemented a more moderate hike, alleviating some of the anticipated burden on citizens.
Factors Behind the Increase
Mubasher Qadeer Abbasi, president of Dairy Farmers Karachi, shed light on the reasons behind the imminent rise in milk prices. He pointed to the escalating costs of milk production, soaring prices of cattle, and perceived negligence from the government as key contributing factors.
Demand for Prompt Action
Abbasi urged the Karachi Commissioner to swiftly issue a notification aligning milk prices with production costs. He emphasized the urgency of this action and warned that if no announcement is made by May 10, stakeholders may take unilateral measures to adjust prices.
Economic Context
The recent increase in milk prices comes amidst broader economic challenges. The Sensitive Price Indicator (SPI) revealed a one per cent decrease in weekly inflation across consumption groups, offering a nuanced view of economic dynamics in Pakistan.
SPI Insights
The SPI for the week ending May 2 stands at 316.95 points, indicating a slight decline from the previous week’s 320.14 points. However, compared to the same period last year, there has been a significant increase of 24.37 per cent in the SPI for combined consumption groups.
Impact Across Expenditure Groups
For the lowest consumption group, experiencing up to PKR 17,732 in expenditure, there was a notable decrease of 1.09 per cent in the SPI. This decline, reflected in the drop from 309.64 points to 306.26 points, offers insight into the economic realities faced by different segments of society.
The approval of a milk price hike in Karachi reflects broader economic challenges, highlighting the delicate balance between meeting consumer needs and navigating financial constraints.
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