The Bangladesh Milk Producers' Cooperative Union Limited (Milk Vita) has raised the price of its milk by Tk 10 a litre. The new price took effect on 5 August.

The authorities said the prices of Milk Vita standard liquid milk and toned milk were revised because of rising costs of raw liquid milk, fuel and production inputs.

Under the new prices, a one-litre pack of standard liquid milk has risen from Tk 100 to Tk 110 and a 500ml pack from Tk 55 to Tk 60. A 500ml pack of toned milk has gone from Tk 50 to Tk 55.

Milk Vita is an organisation under the Rural Development and Cooperatives Division.

Asked about the increase, Mohang Shawkat Rashid Chowdhury, secretary of the Rural Development and Cooperatives Division, told Jagonews: "Milk producers are now selling milk at higher prices in the market, so Milk Vita is not getting the milk it needs. We have to consider why producers would give milk to Milk Vita if they don't make a profit."

"Other companies are buying milk at higher prices and taking it, so Milk Vita is not getting milk," he said. "If we don't follow the rules of the market economy, we can't make Milk Vita strong. We want producers to be interested and get a good price."

The secretary said much of the extra money from the increase would go to farmers and milk producers. Milk Vita's operating costs include not only staff salaries but machine maintenance and other expenses, but the main aim of the increase is to ensure a fair price for ordinary farmers and cattle rearers.

"If our producers don't give us milk, how will we sell milk? If no milk comes in, what good is raising the price by Tk 10?" he said.

Shawkat Rashid Chowdhury said a plant in Chattogram is being expanded. If production can be increased, milk supply will rise and prices will come down in line with market rules. "If I can increase production, the price of milk will also fall. When supply rises, there will be room for prices to fall in a competitive market," he said.

On quality, he said: "The milk we produce is high quality. There are no chemicals or preservatives in our milk, which is why it spoils quickly if left out."

He said Milk Vita should be not just a business but a way to create entrepreneurs in rural communities. "We want poor people who rear one, two or three cows to become farm businesspeople, with more people working under them. We want to create entrepreneurs among the people of this country," he said.

He also said Milk Vita has more staff than it needs, but the plan is to put them to work rather than dismiss them.

Acknowledging the impact on consumers, he said: "As a buyer myself, I first wondered whether Milk Vita's milk would still sell if the price went up by Tk 10. But if no milk comes in, how will we sell milk at all?"

Source: Jagonews24. First published in Bengali on The Agro News.