Question

Milk is available at Rs 40 per litre while dahi at Rs 60 per kg and paneer at Rs 200 per kg. If both are obtained from milk, why is there so much difference in their prices?

Answer 1

Milk, dahi and paneer have different prices because processing increases the cost and changes the quantity of the final product.

1. Milk is sold almost in its original form, so its price is lower.
2. Dahi requires fermentation, proper storage and packaging, which add to its cost.
3. Paneer requires a much larger quantity of milk to produce a small quantity of paneer. It also needs heating, curdling, pressing, labour and packaging.
4. Transport, refrigeration, processing and shop expenses also increase the final price.

Therefore, even though dahi and paneer are made from milk, their production cost and value are higher, so they are sold at higher prices.