In the light of the cartelization and the pricing of the fattening chickens of one day (DOCS), the Pakistan Competition Commission (CCP) slapped a collective fine of RS155 million in eight main poultry farms, a PCCH press release said Wednesday.
Last week, the National Price Monitoring Committee showed concerns about the growing trend in perishable products, which ordered the Ministry of Food Security to develop a price control mechanism for poultry.
The PCCH received a Suo Motu cartelization notice in the DOC market, initiating an investigation that found that eight main hatcheries dedicated themselves to a coordinated effort to fix their prices.
The PCCH appointed the following hatcheries: Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group and Sabir’s Group.
Detailing the mode of operation of the poster, the PCCH said the hatcheries discussed prices in a WhatsApp group entitled “Announcement of chick rates”. The group was administered by a senior official of Big Bird Group, while Marketing Manager of the Big Bird Group, Dr. Shahid, coordinated the daily price updates.
In addition, he pointed out that the poster regularly announced uniform doctors for Punjab. With minor load settings, it also influenced rates in fine and karachi.
It was noted that the group members discussed and shared prices the next day approximately 198 from 2019 to 2021. Price -sensitive information was exchanged 108 times through text messages and 87 times through WhatsApp, the PCCH said.
The PCCH observed that between March 2020 and April 2021, the price of documents increased by 346 percent, from RS17.92 to RS79.92 per chick, which contributed to the inflated prices of the chicken.
The president of the Hotchery Association Affairs Committee of the Hotchery Association of Pakistan (PPA), Abdul Karim, secretary of the PPA, General Mayor Syed Javaid Hussain Bukhari, along with other PPA officials were also present in the WhatsApp group.
According to the PCCH, the eight groups directly violate section 4 of the 2010 Competition Law, which prohibits collusive agreements to set prices, control the offer or restrict production.
The PCCH commented that such practices damage competition in the market and increase food prices, calling it a shameful exploitation of society.
“Commercial associations are intended to help develop their sectors, not to sensitive information to the price of shares or facilitate cartelization. Price setting through associations is a serious market distortion and consumer exploitation. Prices must be determined by the forces of free demand and supply,” said the press release.
Citing new complaints of price increases, the PCCH stressed that the fair rate of the documents market should be around RS78 per chick instead of the recent price increase of up to RS230 per chick.
The PCCH encouraged any person aware of anti -competitive activities by commercial associations to file a complaint through the PCCH complaints.
