The Bangladesh Competition Commission has fined People's Poultry and Hatchery Ltd Tk 7,202,973 for conspiratorial collusion, limiting or controlling the production, supply, and market system, and abnormally determining the purchase or sale price of eggs.
According to an investigation based on reports from the Directorate of National Consumer Rights Protection (DNCRP) in 2022 and various media sources, the company collaborated with other major poultry firms, including Kazi Farms Group, CP Bangladesh, Diamond Egg Ltd, and wholesalers such as Tejgaon-based traders鈥� cooperatives 鈥� to artificially inflate egg prices and control supply.
Earlier, the Competition Commission also fined Kazi Farms Limited, CP Bangladesh Company Ltd, Diamond Egg Ltd, Saguna Foods and Feeds Bangladesh Private Ltd, and a number of wholesalers with various amount of money unders the similar charges.聽聽聽
According to a statement issued by the Competition Commission on Monday, it found that People鈥簊 Poultry and Hatchery Ltd used to send trucks with eggs to wholesalers with a message fixing the price of eggs at 30-40 paisa higher than the market price.
Evidence suggested that this pricing was fixed through collusion with the abovementioned firms. If traders refused to comply, the company cancelled egg supplies.
The traders, in fear of being deprived of business, had to buy at the dictated price because the other big companies also demanded the same price in collusion with one another.
It is also alleged that the company mixed hatching eggs with commercial red eggs and sold them at the price of commercial eggs.
The wholesale price per egg in the market ranged between Tk聽11.60 and Tk聽11.80. People鈥簊 Poultry and Hatchery Ltd sold eggs at Tk聽12 each, exerting excessive influence on the market and contributing to price hikes.
Following a hearing where the company鈥檚 legal representatives presented their arguments, the commission ruled that People鈥簊 Poultry and Hatchery Ltd had violated multiple provisions of the Competition Act, 2012.
Since this was the company鈥檚 first case before the commission, it was fined Tk聽7,202,973 based on its average turnover over the past three years.
Moreover, the company has been directed to deposit the fine within 30 working days. Failure to comply will result in an additional penalty of up to Tk聽100,000 per day under the Competition Act.
However, the statement added that the company retains th right to seek a review or appeal against the decision.
