"The state government will not allow Goa State Milk Producers Union (Commonly known as Goa Dairy) to increase the prices of milk", Parrikar said.
He, however, said that officials of Goa Dairy have not approached him so far seeking hike in the prices of the commodity.
"Milk is bought at Rs 16 per litre in Goa and sold at Rs 38 per litre...Why this much margin?", Parrikar said.
The chief minister, however, hinted that milk rates may go up later.
Goa has a requirement of 3.5-4 lakh litres of milk every day while the state production is restricted at only 50,000 litres.
Officials claim that milk production will touch 68,000 litres by the end of fiscal 2013.
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