Karachi dairy associations fined for raising milk prices

KARACHI: The Competition Commission of Pakistan (CCP) has imposed fines on the dairy associations in Karachi for artificially increasing milk prices, ARY News reported on Saturday.

CCP imposed a fine of Rs1 million on the Dairy and Cattle Farmers Association while Rs5 lac each on the Dairy Farmers Association Karachi and Karachi Dairy Farmers Association.

During the inquiry, all three Dairy Farmers’ Associations were found guilty of colluding to raise the price of fresh milk in Karachi and surrounding areas.

The video evidence also confirmed that Dairy Associations coerce the wholesalers and retailers to implement their arbitrary prices.

The Dairy Associations also hoarded the milk in ice factories to increase pressure on the supply of milk and create an artificial shortage, only to sell it in interior Sindh at inflated prices.

Read More: Dairy farmers want milk price to be fixed at Rs300/litre in Karachi

The CCP took stern notice of disrupting the market of fresh milk and imposing unnecessary financial burdens on consumers.

The prices of milk in Karachi are already very high، but the Dairy and cattle farmers are still demanding a significant increase in the price of milk, proposing an additional Rs80 per litre.

According to details, the dairy and cattle farmers, who had previously agreed with the Karachi commissioner to maintain the milk price at Rs220 per liter until December 2024, are now pushing to nullify this agreement and set a higher price.

They are advocating for a revised price of Rs300 per liter, seeking an official notification to endorse this change.

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