The Competition Commission of Pakistan (CCP) has found the prima facie involvement of three leading dairy associations in cartelisation and price-fixing of milk in Karachi.
The CCP initiated the enquiry after taking notice of the media reports and concerns raised in a letter received from a leading consumer association against the rise announced in the price of milk in Karachi and its adjacent areas by the dairy associations at farm, wholesale and retail levels, said a statement issued on Tuesday.
Media reports also highlighted the involvement of several other dairy associations in price-fixing of milk.
It was specifically mentioned that the Dairy Farmers Association (DFA) Karachi had raised the price of milk from Rs110 per litre to Rs120 per litre with immediate effect, whereas the official government rate was Rs94 per litre.
The change in rates resulted in daily liability passed on to consumers to the tune of approximately Rs130 million and an annual impact of approximately Rs47 billion.—APP