The Competition Commission of Pakistan (CCP) has levied fines on dairy associations in Karachi for artificially inflating milk prices.
A fine of Rs1 million was imposed on the Dairy and Cattle Farmers Association, while the Dairy Farmers Association Karachi and Karachi Dairy Farmers Association were each fined Rs500,000.
An inquiry revealed that all three associations had colluded to raise fresh milk prices in Karachi and nearby areas. Video evidence further confirmed that these associations pressured wholesalers and retailers to comply with their arbitrary pricing.
The associations were also found hoarding milk in ice factories to create an artificial shortage and then selling it at inflated rates in interior Sindh.
The CCP condemned these practices for disrupting the fresh milk market and placing unnecessary financial strain on consumers.
Despite already high milk prices in Karachi, dairy and cattle farmers are demanding a significant hike of Rs80 per litre.
Previously, an agreement with the Karachi commissioner set milk prices at Rs220 per litre until December 2024. However, the associations are now pushing to nullify this agreement and seek to raise the official price to Rs300 through a revised notification.
