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The Bangladesh Competition Commission has fined two companies Kazi Farms and Saguna Foods about 8 and a half crore Taka in the case related to the abnormal increase in the price of broiler chicken. This penalty was imposed after settling two separate cases filed against the two companies last Monday (October 10, 2023).
According to competition commission sources, a case was filed against 36 companies after the price of various products increased in the country's market in September last year. Then there was a case against these two institutions. In one of these cases, Kazi Farms Limited was fined Tk 5 crore for allegedly increasing the price of broiler chicken. Saguna Foods Bangladesh Limited was fined Tk 3 crore 44 lakh in another case on the same complaint.
When asked about this, Bangladesh Competition Commission Chairperson Pradip Ranjan Chakraborty told Prothom Alo that disciplinary action has been taken against these two institutions under Section 15 of the Competition Act. However, he said, the companies against whom the case judgment has come, can apply for review or appeal regarding this judgment if they want.
Section 15 of the Commission's Act states that no person shall enter into any agreement or conspiracy, directly or indirectly, in relation to the manufacture, supply, distribution, warehousing, or acquisition of any goods or services, which create an adverse effect on competition or causes proliferation or in the market. Monopoly (monopoly) or oligopoly (where more than two, but not numerous, firms control the market) creates a situation.
ABM Hamidul Misbah, the lawyer appointed by Kazi Farms, said, "Kazi Farms is an honest and law-abiding business organization, which has never been involved in collusion or price gouging." Our auction process is a transparent and free system to know the daily market price. We will appeal against this decision. Hopefully, we will be found innocent.'
According to the sources of the Competition Commission, in view of the judgment of the case, if the penalized institutions do not comply with the order of the commission within a certain time subject to the completion of the appeal or other legal steps, there is a provision to impose a fine of not more than one lakh taka per day in the case of imprisonment for more than one year or fine according to section 24 of the Competition Act.
Source: Online/GFMM
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