The Bangladesh Competition Commission has imposed a fine of Tk7.2 million on People’s Poultry and Hatchery Ltd for engaging in anti-competitive practices, leading to a rise in egg prices.
The ruling comes after an extensive investigation into the allegations against the company of manipulating prices and unlawfully controlling supplies in collaboration with other poultry firms, according to the Bangladesh Competition Commission.
The investigation, initiated following reports from the National Consumer Rights Protection Directorate in 2022 and multiple media outlets, revealed that People’s Poultry colluded with several other firms, including Kazi Farms Group, CP Bangladesh Company Limited, Diamond Egg Limited, and the Egg Traders’ Wholesale Multipurpose Cooperative Society (Tejgaon) for their joint market manipulation scheme. The companies were found to have restricted egg supply and artificially raised prices, negatively impacting the market and consumers.
Reports indicate that People’s Poultry and Hatchery Limited dictated egg prices through SMS notifications sent to traders after their vehicles had already been dispatched for collection. The company charged 30-40 paisa more per egg than the prevailing market rate and refused to supply eggs to those who did not comply. Additionally, traders were forced to buy hatching eggs at the price of commercial eggs, with threats of withholding deliveries.
During the period under review, the wholesale market price of eggs ranged between Tk 11.60-11.80 per piece, but People’s Poultry & Hatchery Limited was selling eggs at Tk 12 per piece, causing market disruption and price escalation.
Following hearings where legal representatives of the company presented written and oral arguments, the Bangladesh Competition Commission found People’s Poultry & Hatchery Limited guilty of violating Sections 15(1) and 15(2) of the Competition Act, 2012. This marks the first case against the company under this law.
Considering all factors, the Commission imposed a fine of Tk7,202,973, calculated based on the company’s average turnover over the past three years. The company has been ordered to pay the fine within 30 working days. Failure to comply will result in an additional daily penalty of up to Tk100,000, as per Section 20(g) of the Competition Act.
People’s Poultry & Hatchery Limited retains the right to file for a review or appeal against the ruling. However, the Commission’s decision highlights the government's commitment to ensuring fair market competition and protecting consumer interests from corporate malpractice.
Source: Daily Sun
Bd-pratidin English/ Afia
