Karachi: The Competition Appellate Tribunal (CAT) instructed representatives from three Karachi dairy farmer associations to provide written commitments to abstain from milk price fixing. The Tribunal also reduced penalties for key association leaders at their request.

The penalties for Shakir Umer Gujjar, President of the Dairy and Cattle Farmers Association, and Haji Sikandar Nagori of the Karachi Dairy Farmers Association, were decreased from PKR 1 million and PKR 500,000, respectively, to PKR 150,000 each.

The Competition Commission of Pakistan (CCP) initiated an inquiry following reports of a significant rise in milk prices in the city. The investigation revealed that the associations played an active role in increasing prices across multiple levels, including bandhi, mandi, wholesale, and retail. The associations reportedly used threats to disrupt milk supply to enforce these price hikes.

Video evidence captured Shakir Umer Gujjar addressing farmers to announce a price increase, and the CCP confirmed that these prices were subsequently applied throughout Karachi. The investigation further uncovered that milk was stored in ice factories to create shortages, later selling it at inflated rates in rural Sindh, affecting the supply chain and consumers.

The CCP emphasized the importance of business associations ensuring their platforms do not facilitate the sharing of sensitive commercial information or promote anti-competitive activities.