Reduce rate or face action, govt issues 3-day ultimatum to milk cos
Retailers asked not to get stocks at higher prices
GK BUSINESS REPORTER
Srinagar, May 7: The Consumer Affairs and Public Distribution Department (CAPD) today issued a three-day ultimatum to some milk producing and marketing companies in the Valley to bring down rates of their packaged liquid products or face consequences.
Senior officials of CAPD said the department today issued show cause notices Khyber Agro Farm Private Limited, Zam Zam Private Limited and Milk Federation Cheshmashahi (Snowcap) giving them three-day period to bring down the rates.
According to officials the rate had previously been fixed by the government after holding deliberations with different stakeholders and representatives of milk companies. “Finally a meeting was held in March this year where the rate was fixed and made applicable from April 1 at Rs 24/litre for single toned milk.”
“However, this has been seen that these companies have enhanced the rates unilaterally and are selling the single toned milk per litre at Rs 25 to Rs 26 in the market,” they said.
The officials said the companies cannot violate government fixed rates, “more so when they have been fixed after taking them into confidence.”
They said the companies have also introduced double toned milk in the market without government authorisation.
“We have not fixed any rate for the second toned milk. But these companies without showing any regard to the government instructions have introduced the double-toned milk (which has less fat) in the market and are selling it at Rs 23/litre,” the officials said, adding that even if such a product was to be brought into the market, it would have to be sold at much lesser rate than they were selling it at present.
When contacted Director CAPD Abdul Waheed Tak said that during marketing checking at several places in Srinagar today it was noticed that these companies were selling their packaged milk at arbitrary rates. “The companies cannot unilaterally increase the prices,” he asserted.
He said the department had given them three day ultimatum after which “we will seize their stocks wherever found in the market.”
He said: “We inform all the retailers not to get the supplies from the companies at rates which are higher than the government fixed.”
Lastupdate on : Sat, 7 May 2011 21:30:00 Makkah time
Lastupdate on : Sat, 7 May 2011 18:30:00 GMT
Lastupdate on : Sun, 8 May 2011 00:00:00 IST
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