CCP imposes Rs75m fine on PFMA for fixing prices

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Staff Reporter

Islamabad

The Competition Commission of Pakistan (CCP) has imposed Rs75 million on Pakistan Flour Mills Association (PFMA) for fixing prices explaining that the association violated Section 4 of the Competition Act, 2010 by fixing the price of wheat flour, providing a platform to share commercially sensitive information and fixing the quantities of production.
The CCP took notice of various news items suggesting an unusual price hike in the prices of wheat flour across the country and carried out dawn raid of PFMA premises, a statement issued by the commission said on Monday.
The inquiry in the matter concluded that PFMA is providing a platform to its members for settling of prices of wheat flour to avoid any form of competition which is in violation of Section 4 of the Act.
After hearing the parties, the CCP’s bench comprising of the chairperson Vadiyya Khalil and Members Dr Muhammad Saleem and Dr Shahzad Ansar passed the order.
In its order, the CCP observed that under Article 38 of the Constitution the State is responsible to ensure the provisions of food and basic necessities at fair prices along with other social and economic benefits to its citizens.
Accordingly, provincial food departments set a maximum cap of the wheat flour price under the foodstuffs (Control) Act, 1958; as wheat is Pakistan’s dietary staple and used by consumers belonging to all socioeconomic groups.