CCP Fines Poultry Hatcheries Rs. 155 Million for Illegally Fixing Prices

The Competition Commission of Pakistan (CCP) has imposed a collective fine of Rs. 155 million on eight major poultry hatcheries for cartelization and price-fixing of day-old broiler chicks (DOCs). The CCP took suo motu notice of cartelization in the day-old chick (DOC) market and initiated a comprehensive inquiry. The investigation found that major hatcheries — including Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group — engaged in coordinated price-fixing, in violation of Section 4 of the Competition Act, 2010. The CCP stated that Section 4 of the Competition Act, 2010, prohibits collusive arrangements to fix prices, control supply, or restrict production, as such practices damage market competition. It emphasized that trade associations are intended to develop their respective sectors — not to share price-sensitive information or facilitate cartelization. Price-fixing through such associations represents a serious market distortion and an exploitation of consumers. Prices, it stressed, must be determined by free market demand and supply. The CCP also noted fresh complaints indicating that hatcheries may once again be engaging in collusion. Prices of day-old chicks have recently surged to as high as Rs. 230 per chick, despite the fair market value being around Rs. 78 per chick. The Commission warned that cartelization harms competition, inflates food prices, and constitutes a shameful exploitation of society. It urged citizens to report any anti-competitive practices by trade associations through CCP’s complaint portal.