liter milk and laban packs Okaz/Saudi Gazette DAMMAM – Sources involved in the dairy industry in the Eastern Province say dairy companies have several options to circumvent the Ministry of Commerce decision to control prices, including stopping the production of their two-liter pack and only continuing to produce the one-liter pack for SR4. They said this contradicts the free market policy adopted by the Kingdom several decades ago. They described the intervention as a dangerous precedent threatening the 44-year-old industry. They said the ministry has rushed the decision and they do not support it. They said the price increases are insignificant. A one liter bottle would cost SR5 and a two-liter bottle SR10. They said the recent price war had resulted in prices dropping to SR4 and SR7. The sources said they were stunned by the alleged disinformation of the media, which claimed there will be increases of as much as 50 percent. They said the increase was only 14 percent. And, only two companies increased the prices of their products. They said the reasons for the increase is well-known and includes the prices of raw materials and the wages of workers. They said this poses a crucial question about the ministry's stance toward the 50 percent price hike of soft drinks. “If the ministry's justification is that milk is an essential product, then it should work out an accurate equation which takes into consideration the mutual interests of the producers and consumers instead of placing too much emphasis on the interests of one party,” said a source. Meanwhile, female consumers are angry about the rise in the price of milk, with one saying it violates the rights of children. Okaz/Saudi Gazette visited several supermarkets and noticed a rise in milk powder prices, produced by different companies, from SR5 to SR6. The price of a small box of milk is now SR34 and a medium size box SR70. One company charges SR45 for a small box, SR79 for a medium size box, and SR90 for a large box. Another company charges SR26, SR44 and SR101, respectively. Nahla Muhammad, an employee, said that consumers want a convincing justification for the increase in prices. “Why the increase in milk and rice? In Ramadan, these two products are used a lot,” she said, adding that prices should go back to normal. Fawziyah Muhammad, an employee, said: “I have several kids who need two cups of milk a day but I'm going to look for cheaper companies now.” She added that the Consumer Protection Association should visit these supermarkets because there is a big difference in milk prices between companies, she said. Manal Abdullah, a housewife, wondered why milk prices have increased before Ramadan. “Is it because we use milk a lot in Ramadan? I'm thinking about shifting to wholesale dealers.” Hanan Amer, a housewife, said that the consumer is going to be negatively affected by this rise in prices, especially working-class and middle
