The federal government has started consultation on price decapping of milk, meat, and mutton to support the development of the livestock sector.
Sources said that a meeting was held under the chairmanship of the Animal Husbandry Commissioner on May 21, 2024, to deliberate on the issue of price deregulation capping on milk, beef, and mutton in the country.
Sources said that Commissioner Husbandry Ministry of National Food Security and Research briefed the participants about the background of the meeting, highlighting the significance of the de-capping of milk and meat prices in Pakistan along with previous developments on this issue.
Ministry of National Food Security and Research started advocacy to deregulate the prices of milk, beef, and mutton in the country and consulted with stakeholders.
After stakeholder consultation, a summary for ECC titled -Deregulation/ decapping of milk, mutton, and beef prices” was drafted and submitted to the Ministry of Law and Justice, Ministry of Industries and Production, and Ministry of Finance for their views/comments.
The regulation of milk meat and meat prices besides other disadvantages mainly discourage the farmers and investors from making large investments due to established fact that low and insignificant profit margin against the volume of their investment.
This is the major hindrance to transforming this sector into the corporate sector, which is limited to value addition and product diversification for domestic consumption as well as for export purposes
The Deputy Secretary Expenditure Finance Division supported the concept of price decapping and stressed that consultation with provinces may be made to further work on it.
Barrister Adil Kahloon. Deputy Legislative Advisor. Ministry of Law and Justice also emphasized that price monitoring and control are the prime responsibility of provinces and further said that in a recent judgment passed by the High Court Islamabad price control of items is the mandate of provinces. He further narrated that the federal government can only work on policy decisions up to the jurisdiction of ICT.
Secretary L&DDD Baluchistan shared that LADDD Baluchistan has supported the price decapping of milk, meat, and mutton prices in the country and further said that Baluchistan has already initiated the process for the approval of Cabinet for price decapping which is still under consideration. He further suggested that the Secretary MNFS&R may give a courtesy call to Chief Secretary Baluchistan to pursue the summary of the cabinet.
Dr Hizab Ullah Bhutto DG Livestock and Fisheries Department Government of Sindh sa suggested that farmers’ associations, including the meat processors and retailers, should also be consulted with relevant stakeholders. He also mentioned that the cost of production of milk and meat should be estimated in different production systems in the country, and prices of milk and meat should be rationalized accordingly.
Abdullah Khan. Assistant Commissioner Islamabad representative of Chief Commissioner Islamabad affirmed that there should be a regulatory mechanism for the control of prices and if the Government unanimously decides or opts for any policy regarding decamping the regulators will essentially work on its enforcement.
Dr. Muhammad Mohsin Kiani Sector Specialist Livestock Ministry of Planning Development and Special Initiative also appreciated the efforts of the Federal Government for this initiative and further proposed that besides this reform a regulatory mechanism should also be developed to support a free economy on scale business besides investment of quality of animal products.
Muhammad Akhtar. Director Agro Products Ministry of Commerce also requested to work on research on the regional economy for replication of the price decapping model.
President of Dairy Cattle and Farmer Association DCFA Mr. Shakir Umer Gujjar appreciated the efforts of the federal government and respuested all stakeholders to join hands for an effective mechanism for price control for the market-free economy. The estimation of the cost of milk should be rationalized according to input cost.
Representative from L&DDD Punjab, AJK. KPK and Gilgit Baltistan supported the proposal of price decapping.
After through discussion, the forum agreed in principle on price decapping of milk, meat, and mutton to support the development of the livestock sector.
In addition, a regulatory mechanism covering the quality aspects of milk meat and mutton be adopted.
