Food commodities: CCP kicks off countrywide probe into price rise
Investigation comes in the wake of concerns about manipulation of supply and prices.
Investigation comes in the wake of concerns about manipulation of supply and prices. CREATIVE COMMONS
ISLAMABAD:
Soon after Finance Minister Ishaq Dar expelled an official from a meeting held to review the prices of commodities, the antitrust watchdog – Competition Commission of Pakistan (CCP) – initiated a country-wide probe into possible collusion behind rising prices of essential food items in the informal sector.
The probe has been initiated after concerns were raised by the public and the government that individuals in informal food markets were manipulating the supply and prices of products against the law and public interest, according to a press release issued by the CCP.
It pointed out that Dar had expressed his concern over the increase in prices of essential food commodities, particularly fruits, vegetables, milk and pulses, during the National Price Monitoring Committee meeting held earlier this week.
An official of the Ministry of Finance said that Dar was unhappy with the performance of the CCP on the issue of checking cartels that were manipulating food prices. He asked the CCP representative to leave the meeting.
Under the law, monitoring of prices is a provincial subject and the PML-N government has failed to introduce legislation to bring necessary changes for strengthening the legal mechanism despite repeatedly showing the intention to bring a bill to parliament.
The CCP said in the first phase of the investigation, crucial information regarding undertakings that manipulate pricing and supply of commodities is being gathered. In this regard, provinces and district administrations have been approached by the commission and it is expected that the CCP will soon have all the relevant information and data required to take strict action as per the Competition Act, 2010.
Through this investigation, the CCP will determine whether the price hike in the food commodities market is a result of anti-competitive practices such as cartelisation or abuse of dominance. Once the process is completed, the CCP said it may impose substantial penalties on those involved in any unlawful acts.
The CCP has so far largely remained a toothless body and is unable to enforce its writ. It is financially dependent on the federal government.
On its part, the government did not make efforts to administratively strengthen the body. It kept positions of members of the commission and a permanent chairman vacant for a year and a half and only recently made these appointments.
Published in The Express Tribune, February 20th, 2015.
Soon after Finance Minister Ishaq Dar expelled an official from a meeting held to review the prices of commodities, the antitrust watchdog – Competition Commission of Pakistan (CCP) – initiated a country-wide probe into possible collusion behind rising prices of essential food items in the informal sector.
The probe has been initiated after concerns were raised by the public and the government that individuals in informal food markets were manipulating the supply and prices of products against the law and public interest, according to a press release issued by the CCP.
It pointed out that Dar had expressed his concern over the increase in prices of essential food commodities, particularly fruits, vegetables, milk and pulses, during the National Price Monitoring Committee meeting held earlier this week.
An official of the Ministry of Finance said that Dar was unhappy with the performance of the CCP on the issue of checking cartels that were manipulating food prices. He asked the CCP representative to leave the meeting.
Under the law, monitoring of prices is a provincial subject and the PML-N government has failed to introduce legislation to bring necessary changes for strengthening the legal mechanism despite repeatedly showing the intention to bring a bill to parliament.
The CCP said in the first phase of the investigation, crucial information regarding undertakings that manipulate pricing and supply of commodities is being gathered. In this regard, provinces and district administrations have been approached by the commission and it is expected that the CCP will soon have all the relevant information and data required to take strict action as per the Competition Act, 2010.
Through this investigation, the CCP will determine whether the price hike in the food commodities market is a result of anti-competitive practices such as cartelisation or abuse of dominance. Once the process is completed, the CCP said it may impose substantial penalties on those involved in any unlawful acts.
The CCP has so far largely remained a toothless body and is unable to enforce its writ. It is financially dependent on the federal government.
On its part, the government did not make efforts to administratively strengthen the body. It kept positions of members of the commission and a permanent chairman vacant for a year and a half and only recently made these appointments.
Published in The Express Tribune, February 20th, 2015.