Competition Appellate Tribunal Dismisses Appeal of Karachi Dairy Farmers

The Competition Appellate Tribunal (CAT) has resumed hearings after an eight-month hiatus and, in its first session, dismissed the appeal filed by the Dairy Farmer Association Karachi (DFAK) as withdrawn. During the proceedings, the Tribunal was informed that the appeal was not maintainable, since no adverse order had been passed against the appellant. Counsel for the Competition Commission of Pakistan (CCP) clarified that DFAK was registered as a society under the Societies Registration Act, 1860, and the penalty in question had been imposed on the association’s representative, not the association itself. CAT accepted the CCP’s legal position and directed the appellant’s counsel to withdraw the appeal. With the appellant’s consent, the Tribunal subsequently dismissed the appeal as withdrawn. It is pertinent to recall that in December 2024, the CCP had imposed penalties on the representatives of three dairy associations in Karachi for collusive practices aimed at influencing the price of fresh milk—violating Section 4(1) and 4(2)(a) of the Competition Act, 2010. The penalties included Rs. 1 million on Shakir Umer Gujjar of Dairy and Cattle Farmers Association (DCFA); Rs. 500,000 each on Haji Akhtar Gujjar of Dairy Farmer Association Karachi (DFAK) and Haji Sikandar Nagori of Karachi Dairy Farmers Association (KDFA). The CCP initiated its inquiry following widespread media reports of a sharp rise in milk prices across Karachi. Investigations confirmed that the three associations, operating at various stages of the fresh milk supply chain, were actively involved in anti-competitive practices that led to a significant price hike affecting consumers in Karachi and surrounding areas.