Milk price increase - Karnataka
Basic milk price has been increased by ₹4 per litre in Karnataka. The govt says that it is not an increase. They have added another 50ml to the pouch and that this increase is for the addl volume. Essentially, customers are forced to buy additional milk. Milk, rice, wheat, aata, Dal and a couple of vegetables are essential commodities for living. Instead of burdening the consumer, can they not control the administrative, management and distribution costs?
Not only milk, petrol prices gave increased. This will lead to increase in cost of anything and everything.
The arguments that the prices are lower than neighboring states does not hold good. The comparison ought to be based the cost of living (including public transportation) rather than on one or two items.
And the cochin airport udf and other airline charges have been by the Adanis.
Essentially businesses pass on any increase in costs to the consumers.
Customers pay the price. more
Not only milk, petrol prices gave increased. This will lead to increase in cost of anything and everything.
The arguments that the prices are lower than neighboring states does not hold good. The comparison ought to be based the cost of living (including public transportation) rather than on one or two items.
And the cochin airport udf and other airline charges have been by the Adanis.
Essentially businesses pass on any increase in costs to the consumers.
Customers pay the price. more
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View all 7 comments Below 7 comments
they should then have two sizes of packets existing 500 ml and one 550 ml leaving it to customers whoever wants it can buy it rather than forcing it on customers.looks like govt is trying to fool customers similar to their other increases more
Jul 01
Yes sir, it is a marketing strategy. particularly when the production capacity goes up the prices should come down as the working cost comes down. But the commercial organizations adopt different strategies to hoodwink the public. But you caught them. Let us take the example of soft drinks and carbonated water. The pack starts of with a small capacity, Like 200 ml; when the brand name picks up the co want to sell more of the product ml wise or liter wise. So the packing is altered slowly to 250, 300, 500, 600, 750 ml and even more to 1 and 2 L. This to encourage / force people to consume more. The price doesn't correspond to ml wise increase. Eg. the 500 ml toned milk packet of Nandini costs ₹ 22 . With this hike, the 550 ml packet now cost ₹ 24. That is the cost of 50 ml increase of milk is Rs. 2.2 - they have charged only Rs.2/. Apparently the buyer is benefited financially by paying Re 0.2. But the company would have increased the Procurement with less cost and processing charge reduced even below the Re.0.2. It is actually a benefit for the consumer as the producer's production cost and packaging comes down. Both are benefitted. more
Jun 27
Most consumers don't want the extra 50 ml. Probably, they shoukd start selling 250ml packets. more
Jun 27
Heat wave, draught, scarcity of water, cost of cattle protection are some of the contribution factors for price hike. Transportation cost, labor, storage facilities are other factors for increase. Above all many state governments offer freebies and other committed promissory bonds . Without ascertaining financial commitments resulting in price hike. more
Jun 27
