CAT directs milk associations to pledge against price collusion

May 05, 2025 (MLN): The Competition Appellate Tribunal (CAT) has directed representatives of all three dairy farmer associations of Karachi to submit written undertakings pledging not to engage in milk price fixing in the future.

However, at the request of the appellants, the Tribunal reduced the penalties imposed on key office-bearers of these associations.

The penalty for each individual Shakir Umer Gujjar, President of the Dairy and Cattle Farmers Association (DCFA), and Haji Sikandar Nagori of the Karachi Dairy Farmers Association (KDFA) was reduced from Rs1 million and Rs500,000, respectively, to Rs150,000 each.

The CCP had launched an inquiry after media reports highlighted a sharp surge in milk prices in Karachi. Its investigation found that the associations were directly involved in raising prices at all levels bandhi, mandi, wholesale, and retail.

The associations used pressure tactics, including threats to halt milk supply, to enforce price hikes, as per the press release issued today.

The CCP obtained video evidence showing Shakir Umer Gujjar addressing a gathering of dairy farmers to announce an increase in milk prices in Karachi.

Additionally, the Commission secured further evidences confirming that the announced prices were implemented across the city.

The probe also revealed that milk was hoarded in ice factories to create artificial shortages, and later sold at inflated prices in rural Sindh.

These actions disrupted the supply chain and burdened consumers.

The CCP reiterates that business associations across the country must ensure their platforms are not used to share commercially sensitive information or facilitate anti-competitive conduct.

Copyright Mettis Link News