Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
In a significant development, the Bangladesh Competition Commission (BCC) on Monday slapped substantial fines on Kazi Farm and Saguna Foods for manipulating chicken market.
The action comes after a year-long investigation into the soaring prices of eggs and broiler in August 2022, which saw egg prices skyrocket to Tk 180 per dozen and broiler chicken to Tk 300 per kilogram.
The BCC initiated its probe in the wake of a public outcry over exorbitant prices that gripped the poultry market.
After a meticulous investigation, it was revealed that market manipulation by the two key industry players behind this unprecedented price surge.
Kazi Farm, a household name in the poultry industry, has been fined a staggering Tk 50 million while Saguna Foods Pvt Ltd Tk 34.4 million.
Such substantial fines are intended to act as a deterrent to others in unfair market practices and also to safeguard consumer interests, said BCC chairperson Pradip Ranjan Chakraborty.
He told the FE that they fined the two firms under section 15 of the Competition Commission Act.
However, the FE failed to obtain comments from the two companies regarding the issue immediately.
Meanwhile, the egg market became volatile again in August 2023 and the BCC lodged complaints against 10 firms and poultry-related organisations this September for manipulating the egg market in collusion with each other to hike egg prices.
The companies are Kazi Farms, Paragon Poultry Ltd, Diamond Egg, Peoples Poultry and Hatchery, Naba Farm, Bangladesh Poultry Industries Central Council, Bangladesh Poultry Industries Association, Bangladesh Poultry Farm Protection National Council, Poultry Professionals Bangladesh and United Egg Sale Point.
Earlier on 21 September 2022, the BCC sued 11 companies and individual traders for market manipulation by jacking up prices of many daily essentials since the beginning of the Russia-Ukraine war.
The cases were filed under sections 15 and 16 of the law and the accused were notified in this regard the same day, according to the BCC.
The companies and individuals, including proprietor of Rashid Agro Food Industry Ltd Md Abdur Rashid, Managing Director of Unilever Bangladesh Ltd, Managing Director of Kazi Farms Pvt Ltd Kazi Zahedul Islam for two cases on egg and chicken, Managing Director of Paragon Poultry Ltd for two cases for both egg and chicken, Managing Director of City Group of Industries Ltd for two cases for rice and flour, Adani Wilmar's Bangladesh Edible Oil Ltd, proprietor of Naogaon-based Belcon Group Md Belal Hossain, president of the city's Tejgaon-based Egg Aratdars Multipurpose Cooperative Samity Md Amanat Ullah.
These cases are yet to be settled, said BCC officials.
Meanwhile, egg prices have surged by Tk 10-Tk 12 per dozen just in the last two days, reaching Tk 160 per dozen in retail, as import delays fail to clear up the local market volatility.
Brown farm eggs were being sold between Tk 155- Tk 160, while white eggs ranged from Tk 150- Tk 152 per dozen on Monday, according to traders.
In September and early October, the government approved 15 companies to import 10 million pieces of egg each-totalling 150 million pieces.
The import move met with the local market price volatility to calm down a bit. However, since none of the private importers has been able to bring in a single piece of egg, the prices have started to return in an upward trend. Local egg prices had initially dropped to Tk 140-150 by the end of September following the announcement of imports.
However, delays in the process have now led to a rise in prices, according to Md Juel Rana, a grocer at West Dhanmondi.
Three egg importers, however, told the FE on Monday that they were expecting imported eggs to enter Bangladesh within this week. Around 40 million pieces of eggs are daily produced in the country. Of these, 9-12 per cent is produced by big poultry firms and the remaining by small entrepreneurs in rural areas.
Currently, the country's annual per-capita egg consumption is 136 pieces, data showed.
An average person needs to eat a minimum of 104 eggs annually, according to the Food and Agriculture Organisation (FAO).
tonmoy.wardad@gmail.com