Liquid milk prices go up

Local milk producing companies have increased prices of processed liquid milk on the plea of higher production cost at farm level, industry insiders said.
The companies said cost of milk production at firm level increased significantly due to higher prices of cattle feed.
However, the feed selling companies claimed that there was not any hike in pieces of their items since February 2013.
Leading milk producers, namely Milk Vita, Pran Dairy Limited and BRAC Dairy, and some other small and medium-sized companies simultaneously increased milk price by Tk 4 per litre on February 6.
After visiting some markets, shop keepers were found selling liquid milk at Tk 62 per litre and Tk 34 half litre, which was Tk 58 and Tk 32 respectively a week back.
"Milk price hike means promoting and protecting milk producers," Milk Vita managing director Muhammad Munir Chowdhury told the FE.
"Following higher prices of cattle feed, we have to increase milk price, mainly to save farmers," he added.
However, according to another high official of the company, it increased milk price by Tk 2 per litre at collection level, effective from February 9. But it has increased price by Tk 4 per litre at retail level from February 6.
Kamruzzaman Kamal, marketing director of PRAN Dairy, said their production cost has increased in different stages, from collection to marketing, for which the company has raised milk price at retail level.
"All types of cost from milk collection to marketing have significantly increased. But we haven't raised prices of our products proportionately considering consumers' paying capacity," he added.
Dr Debashish Pal, head of sales and marketing of ACI Godrej Agrovet Private Ltd, a leading cattle feed marketing company, said the feed selling companies have not increased prices of their products during the last one year.
"We did not raise price of any item. Prices of all types of cattle feeds have remained the same since February 2013."
"Whenever milk producers raise prices of their produces, they show the same reason of higher feed prices," he added.
Meanwhile, consumers have expressed their frustration over the sudden price hike of liquid milk.
They said the companies have raised milk prices despite enjoying reduced duties against import of their different manufacturing and marketing materials, as declared in the current fiscal year's (FY) budget.
The government in the budget for FY 14 has reduced up to 12 per cent duties against import of different materials relating to production and marketing of liquid milk.
"What is the impact of tax reduction? We were expecting lower prices of milk after the national budget. If consumers do not get any benefit of the tax reduction facility, the government should withdraw it," a consumer said.
Some consumers opined that milk producers are capitalising the demand and supply gap of liquid milk.
According to the Bangladesh Dairy Association (BDA) data, the country produces around 2.73 billion litres of milk against the local demand for around 3.2 billion litres. The milk processors process only 164.19 million litres.
The country fulfils rest of the demand through import of powdered milk.
According to the National Board of Revenue (NBR), import of powdered milk has annually increased by around 25 per cent during the last three years due to poor production of milk here.