The Competition Commission of Pakistan (CCP) took action against fertilizer companies involved in price-fixing, imposing a hefty fine of Rs375 million on six major fertilizer manufacturers and the Fertilizer Manufacturing Advisory Council (FMAC).
According to the CCP’s statement, each company has been fined Rs 50 million, while the advisory council faces a penalty of Rs 75 million. The Commission noted that despite varying production costs among the companies, the fertilizer prices remained uniform—an indication of collusive behavior.
The CCP revealed that the companies had used public awareness campaigns as a cover to coordinate prices, leading to artificial inflation in the market.
Although fertilizer prices are deregulated under the existing policy, the companies engaged in non-competitive practices, the Commission stated.
The Commission emphasized that this price alignment harmed farmers by unnecessarily raising fertilizer costs. CCP member Dr. Kabir Sidhu made it clear that no business or trade organization is allowed to set prices collaboratively.
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