CAT upholds CCP findings on milk price-fixing by Karachi dairy groups

ISLAMABAD, May 5: The Competition Appellate Tribunal (CAT) has upheld the findings of the Competition Commission of Pakistan (CCP) against three Karachi-based dairy farmer associations for fixing milk prices, but reduced the financial penalties imposed on their key office-bearers.

While affirming the CCP’s conclusion that the associations colluded to artificially hike milk prices, the Tribunal accepted the appellants’ request for leniency. As a result, the penalties on two senior figures—Shakir Umer Gujjar, President of the Dairy and Cattle Farmers Association (DCFA), and Haji Sikandar Nagori of the Karachi Dairy Farmers Association (KDFA)—were reduced from Rs1 million and Rs500,000 respectively, to Rs150,000 each.

In its original investigation, the CCP had found that the associations were involved in coordinated price hikes at multiple levels of the dairy supply chain—from farm (bandhi) to wholesale and retail—using threats and coercion to ensure compliance. The inquiry was triggered by media reports of a sudden milk price surge in Karachi.

The CCP had obtained video footage showing Gujjar publicly announcing a price increase to a gathering of dairy farmers. This was corroborated by evidence confirming that the raised prices were enforced across the city. Investigators also found that milk was deliberately hoarded in ice factories to create artificial shortages, and later sold at inflated rates in rural Sindh—disrupting the supply chain and inflating consumer costs.

While the Tribunal’s order softens the financial blow for the accused, it directs all three associations to submit written undertakings that they will not engage in price-fixing in the future.

The CCP, in a statement following the verdict, reiterated that all trade bodies and associations must ensure their platforms are not used to share commercially sensitive information or facilitate anti-competitive practices.