CCP Fine imposed on Dairy Associations of Karachi for raising Price of Milk
The Competition Commission of Pakistan has imposed a fine of Rs 2 million on three dairy associations in Karachi for increasing the price of milk under the CCP inquiry. The Dairy and Cattle Farmers Association has been fined Rs 1 million, while the other two associations have been fined Rs 5 million each. According to the decision, the associations increased the milk price by influencing the supply of milk and other factors. DCFA is raising voice against this CCP Fine on Dairy Associations.
On the other hand, the President of the Dairy and Cattle Farmers Association, Shakir Umar Gujjar, has called the decision of the CCP Inquiry unfair and contrary to the facts and has appealed for a review. They are raising voice on CCP Fine on Dairy Associations. It has been announced that the decision will be challenged in court if it is not reviewed.
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CCP Fine on Dairy Associations Background
It should be noted that the Competition Commission of Pakistan launched an inquiry into the increase in milk prices in Karachi after various media reports. The three associations of Karachi were included in the inquiry. During the inquiry, the association took the position that Commissioner Karachi has not reviewed the price of milk despite inflation for the last three years. The reason for the increase in milk prices is the increase in production costs.
According to the Decision report of the Competition Commission of Pakistan, the associations increased milk prices by putting unnecessary pressure and obstruction on the milk distribution system. The associations exercised significant influence on the key factors in determining prices, including Bandhi rates, mandi rates, and wholesale and retail prices, which led to a deterioration in the fresh milk market. The order further revealed that the associations stored milk in ice factories to create artificial shortages and later sold it in interior Sindh at high prices.
DCFA Pakistan Response to CCP Inquiry Decision
On the other hand, the decision has been termed unfair and contrary to facts by the President of the Dairy and Cattle Farmers Association, Shakir Umar Gujjar. Shakir Umar has appealed for a review of the decision. Shakir Umar Gujjar says that expensive milk produced in Karachi cannot be sold in interior Sindh. The allegation of milk storage is completely false. All cities in interior Sindh are rich in agriculture and livestock. Dairy farmers have nothing to do with milk prices. The power to implement prices in the city lies with middlemen and milk associations. Shakir Umar says that if the decision is not reviewed, they will challenge it in court.
