The Competition Commission of Pakistan has issued a strict warning to those who increase the price of one-day-old chicks by forming a nexus to maintain transparency in the prices of broiler chicks in the poultry industry.
In a statement, the Competition Commission of Pakistan has also directed chicken hatcheries across the country to submit records of the prices of one-day-old chicks on a daily basis during the last 3 months.
According to the report, the Competition Commission was receiving several complaints regarding the continuous increase in the prices of one-day-old chicks due to the nexus of hatcheries.
According to reports, the prices of one-day-old chicks increased by an extraordinary 250 percent, as a result of which the average price per chick increased from Rs 50 to 60 to Rs 220.
The Competition Commission is investigating the sudden and disproportionate increase to see whether it is due to supply and demand and other factors in the market or whether there is a nexus between hatcheries.
Most of the complaints received in this regard have pointed out that the price of day-old chicks has not been included in the list of essential commodities to be price-maintained by the relevant provincial livestock departments, leaving its pricing entirely in the hands of suppliers.
In contrast, the prices of broiler chickens — which are listed as an essential commodity — are fixed by the district administration.
This situation highlights the urgent need for transparency and accountability in this vital segment of the poultry sector. The Competition Commission had also conducted a comprehensive investigation into the poultry sector in December 2021, which revealed that companies producing and selling day-old chicks, which had a market share of more than 50 percent, were involved in price-fixing.
Show cause notices have been issued to these companies, allegedly involved in a price fixing cartel, and hearings are ongoing with the relevant parties.
