MUMBAI, May 13: Mumbaiites are in for another rise in their monthly expense account. Close on the heels of increase in water taxes by the municipal authorities, the state government has announced a 25 per cent hike in milk prices on Tuesday.

Alarmed by the huge losses incurred by the government milk schemes, the Sena-BJP government resorted to the extreme step. Cow milk, special Aarey milk and buffalo milk will be dearer by Rs 2 from May 20. The hike will be implemented all over the state. Chief Minister Manohar Joshi said the price of cow milk has been increased from Rs 8 to Rs 10 per litre, while Aarey special will now cost Rs 14 per litre instead of Rs 12 and buffalo milk Rs 14 instead of Rs 11 per litre.

``Though we have resorted to hike in the prices, our rates are still cheaper compared to open market prices,'' Joshi claimed. He said the accumulated losses of Rs 120 crore of all the 13 milk schemes together will be reduced by at least Rs 60 crore following the price hike. The last hike of Re one per litre was made on November 1, 1995, he added.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.