ISLAMABAD: An inquiry committee of the Competition Commission of Pakistan (CCP) on Tuesday found urea manufacturers guilty of price fixing.

The committee recommended to the CCP initiate proceedings against urea manufacturers and the Fertilisers Manufacturers of Pakistan Advisory Council (FMPAC) under Section 30 of the Competition Act 2010.

This recommendation was based on a prima facie violation of Section 4 Prohibited Agreements of the Competition Act 2010, by manufacturers and FMPAC by announcing the maximum retail price of urea at Rs1,768 per 50 kg bag, said a press release.

The inquiry was initiated following an advertisement published by FMPAC and its members on November 26, 2021, announcing a ’maximum retail price of urea during a period of rising urea prices and reported shortages.

According to the Fertiliser Policy of 2001, urea prices were deregulated, and respective provincial agriculture departments notified urea prices from time to time as it is considered an essential item. These prices, as already fixed by the companies, are notified by the agriculture department to use as a reference to check on any profiteering.

It was noted that the companies issue their price lists, which are then notified by the respective Deputy Director of Agriculture (Extension) under the authority of the Punjab Essential Articles (Control) Act 1973.

To obtain copies of these price notifications and the underlying company price lists for the years 2021 and 2022, the inquiry committee contacted the Agriculture Department of Punjab.

Published in Dawn, July 12th, 2023