India Uncut

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Wednesday, October 19, 2005

Most expensive milk ever?

IANS reports:
It takes Rs.740 to produce one litre of milk and Rs.77 to churn out a single egg at an average dairy and poultry farm under the Jharkhand animal husbandry department (AHD).

The high production cost can be arrived at if one crunches numbers for staff salaries, establishment cost and other figures supplied by the department itself.

Never mind if the market price of milk is between Rs 15 and Rs 18 per litre and of one egg is around Rs 2.
Needless to say, it's the poor taxpayer -- you and me -- who foots the bill for this shocking inefficiency. When will we learn?

(Link via email from Aadisht Khanna.)

Update: Naveen Mandava writes in:
In every kind of comparison of private and government service, you will find the establishment costs are completely discounted for or their subsidies are not accounted for. It will be good to see a lot more of facts like these emerge that compare private and government cost of provision.
amit varma, 12:29 AM| write to me | permalink | homepage

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