In a significant move to protect consumer rights, the Competition Appellate Tribunal (CAT) has directed all three major dairy farmer associations in Karachi to submit written undertakings, pledging that they will not engage in milk price fixing in the future.
The directive follows an appeal in which the Tribunal also reduced penalties for senior office-bearers of the involved associations:
Shakir Umer Gujjar, President of the Dairy and Cattle Farmers Association (DCFA)
Haji Sikandar Nagori, of the Karachi Dairy Farmers Association (KDFA)
Their fines were brought down from Rs. 1 million and Rs. 500,000, respectively, to Rs. 150,000 each, upon request from the appellants.
Background of the Case
The Competition Commission of Pakistan (CCP) initiated an inquiry after media reports exposed a sharp increase in milk prices in Karachi. The investigation revealed that dairy associations were actively involved in setting and enforcing milk prices across various supply levels — including bandhi, mandi, wholesale, and retail.
The CCP secured video evidence of Shakir Umer Gujjar publicly announcing milk price hikes at a gathering of dairy farmers. Further proof confirmed that these prices were implemented citywide.
Alarmingly, the inquiry found that milk was being hoarded in ice factories to create artificial shortages, only to be sold later at higher prices, especially in rural Sindh — severely affecting both availability and affordability.
CCP’s Warning
The CCP has reaffirmed its stance that business associations must not use their platforms to share commercially sensitive information or engage in anti-competitive behavior. It urged all industry groups nationwide to operate transparently and legally, prioritizing public interest over profit manipulation.
