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CCP issues policy note to governments recommending reform of milk price-fixing

By  |  April 24, 2012

The Competition Commission of Pakistan has issued a policy note to federal and provincial governments and administration to recommend reforming the price determination of fresh milk. The CCP raises competition concerns with the practice of local government setting the price of fresh milk after getting input from dairy farmers’ associations and negotiating with stakeholders to agree on a price. This process of agreement and negotiation between the government and the industry violates Section 4 of the Competition Act 2010, as it constitutes anticompetitive price-fixing.

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