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Thursday July 25, 2024

‘Milk price may soar to Rs300 per litre due to new taxes on animal feed’

By Our Correspondent
July 11, 2024
Workers transfer milk from one container to another in this undated image. — APP/File
Workers transfer milk from one container to another in this undated image. — APP/File

The Dairy and Cattle Farmers Association of Pakistan has warned that if the government fails to revoke its new tax regime, the milk price could soar to Rs300 per liter, while the beef price could reach Rs2,000 and that of mutton Rs3,500 per kilogram.

Addressing a press conference at the Karachi Press Club on Wednesday, the association said these taxes on animal feed and raw materials, such as palm kernel cake, canola meal, mustard meal, and sunflower meal, would increase the production costs of milk, meat, poultry, and eggs. This additional cost burden will ultimately fall on consumers who are already struggling with high inflation.

The cattle farmers asserted that they could not produce expensive milk, poultry, and eggs only to sell them at low prices. The recent budget has introduced new taxes on animal feed, sparking another wave of inflation. A 10 percent tax on feed has raised prices by 13 percent, increasing the cost of a feed sack to Rs3,600 and inflating the prices of buffaloes and cows. They said these taxes discourage investment in Pakistan, driving investors to other countries.