Inquiry reveals price fixing in dairy sector

CCP finds involvement of three leading associations in cartelisation


Our Correspondent June 16, 2021
According to the PDA’s calculations, the government will raise additional revenues of over Rs700 million from sale of cream, Rs700 million on dairy powders. PHOTO: FILE

ISLAMABAD:

The Competition Commission of Pakistan (CCP) has concluded an enquiry in the dairy sector which has found the prima facia involvement of three leading dairy associations in cartelisation and price-fixing of milk in the country’s largest metropolitan, Karachi.

The CCP initiated the enquiry after taking notice of media reports and concerns raised by a consumer association against the rise in the price of milk in Karachi and its adjacent areas by dairy associations at farm, wholesale and retail levels.

It was stated that the Dairy Farmers Association (DFA) Karachi had raised the price of milk from Rs110 per litre to Rs120 per litre with immediate effect, whereas, the official government rate was Rs94 per litre. The vast price gap meant that the consumers of Karachi and adjacent areas had to bear a burden of Rs47 billion on an annual basis

As per the inquiry committee, the Karachi Division commissioner notifies the prices at all tiers of the milk supply chain, however, official data shows that the notified prices are not adhered to mainly due to the role of various associations.

Published in The Express Tribune, June 16h, 2021.

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