ISLAMABAD: Based on concerns over high prices of poultry products in the recent past, the Competition Commission of Pakistan (CCP) on Thursday carried out search and inspection of two major poultry feed producers of the country and is said to have recovered evidence of their suspected involvement in collusive activities and price fixing.

The CCP conducted the raid exercising its powers under Section 34 of the Competition Act 2010. Sou­rces in the raiding party told Dawn that teams simultaneously carried the inspections at the offices of two major poultry feed producers in Rawalpindi and in Lahore to determine their collusive behaviour in the market.

The recovered material showed that the prices of broiler feed witnessed an increase of over Rs550 per bag of 50kg during the period of around last 18 months, whereas the average increase in prices of layer feed was over Rs530 per 50kg bag during the same period.

The sources said that the issue was brought to CCP notice by public complaints that the prices of broiler chicken (farm) had increased by more than 100 per cent from Rs103 per kg to Rs225 per kg.

The CCP conducted initial inquiry from the data obtained from the Pakistan Bureau of Statistics (PBS) during the same period and the link between the increase in feed prices and the product prices was inferred.

Upon receipt of the complaints, an informal survey of poultry sheds was carried out. It was noted that feed was sold in 50 kg bags and there are a number of varieties depending on the type of poultry.

It was noted that there was a continuous and simultaneous rise in poultry feed prices from Aug 2019 up to Jan 2021, with the exception of a downward revisions in June and July 2020.

Published in Dawn, February 5th, 2021