CCP Fines Karachi Dairy Associations for Collusion in Milk Price Hikes

The Competition Commission of Pakistan (CCP) has levied fines on dairy associations in Karachi for manipulating milk prices and burdening consumers with unnecessary costs.

The CCP fined the Dairy and Cattle Farmers Association Rs1 million, while the Dairy Farmers Association Karachi and Karachi Dairy Farmers Association were each fined Rs500,000. An investigation revealed that these groups colluded to artificially raise milk prices in Karachi and nearby regions.

Video evidence confirmed that the dairy associations pressured wholesalers and retailers to enforce their arbitrary pricing. They also hoarded milk in ice factories to limit supply, creating artificial shortages and selling the stock at inflated rates in interior Sindh.

The CCP condemned these actions for disrupting the milk market and exploiting consumers. Milk prices in Karachi remain high, yet dairy groups are demanding an increase of Rs80 per liter, despite previously agreeing with the Karachi commissioner to maintain prices at Rs220 per liter until December 2024.