The Competition Commission of Pakistan (CCP) has fined three dairy associations in Karachi for artificially inflating milk prices. The fines were imposed after an investigation found that the Dairy and Cattle Farmers Association (DCFA) was fined Rs1 million, while the Dairy Farmers Association Karachi (DFAK) and Karachi Dairy Farmers Association (KDF) were each fined Rs500,000.
The inquiry followed media reports of a significant milk price hike in Karachi. The CCP’s investigation revealed that these associations played a central role in manipulating the prices. While the associations claimed the government’s fixed prices had not been updated for three years due to inflation, evidence showed that they intentionally disrupted the milk supply chain. This included pressuring wholesale suppliers and retailers to comply with the inflated prices by threatening to cut off their milk supply.
The investigation further revealed that the associations manipulated market rates and caused an artificial milk shortage. By hoarding milk in ice factories and selling it at inflated prices in rural areas of Sindh, they caused significant disruptions in the supply chain, adversely affecting consumers financially.
