The Legal Metrology Department (LMD) of Maharashtra today said it would seek the state government's intervention to fix the maximum retail price (MRP) of milk, which is marketed at variable prices and commissions.
"We will request the government to ask the Accountant General to look into the possibility of fixing the prices of milk. If they can audit the electricity, then definitely they can fix the cost of milk," said Sanjay Pandey, controller, LMD and additional director general of police.
Addressing a gathering of milk marketing federations, dealers, sub-dealers, retailers and consumers from Mumbai and Thane, Pandey said the supply chain should be streamlined to ensure that commission margins come down.
To a question about varying profit margins/ commissions on milk of the same brand even in a single locality, Pandey said, "The margin has to be settled by some kind of assessment as what is actual purchase price, what is the cost and what is the selling price, then only something can be done.
"The problem is that end-consumers want it at their doorstep with minimum stakeholders involved and with fair pricing....This can not be solved overnight," added Pandey.
"We will meet again on Monday and then May 24," Pandey later told reporters.
Major reason for overcharging was the varying margins offered by milk packaging companies to distributors and retailers, he said. "Retailers mop up extra money by overcharging on the brands which do not give enough margins."
Lauding the initiative, managing director of Gokul dairy D V Ghanekar said, "Problem is deep-rooted, but the fact is that we are open to sit and discuss the issues with all the parties."
Milk retailers in Thane area recently went on a strike demanding increase in commissions.
