Monopoly Control Authority (MCA) has directed the manufacturers of packaged milk products to submit details of the price increase and other relevant information by July 9, 2007. Taking notice of reports on pre-budget price hike in Tetra Pack products.
The authority took action for initiating special inquiry under section 14 of the Monopolies and Restrictive Trade Practices (Control and Preventive) Ordinance, 1970. The authority heard the representatives of undertakings on June 28, 2007 at Islamabad and on July 2-3 at Lahore.
The hearings were held under the chairmanship of Khalid A Mirza. All three members of the authority were present. The chief investigation officer chief economic research (ER) and registrar assisted the authority during the hearings.
The hearing at Islamabad was attended by Negro Foods Ltd On July 2; MCA conducted hearing of Hale Foods Ltd; Shakarganj Food Products Ltd; Pakistan Milk Food Manufacturers Ltd; Nirala Dairy (Pvt) Ltd; Nestle Pakistan Ltd and Millac Foods Ltd. On July 3, Premiere Dairy; Noon Pakistan Ltd; Idara-e-Kissan and Prime Dairies Ltd participated in the MCA hearing at Lahore.
The representatives of all the undertaking appeared before the authority on the respective dates and replied to the queries raised by the MCA. The only exception was Shakarganj Food Products limited which was represented by Ahmed Bilal Kahloon, Advocate, who was not properly briefed about the company's affairs, and therefore he could not respond to a number of queries raised by the authority.
The authority inquired, from the representative of the undertakings, about their production capacity, production, production, production process, market share, product price and increase in price of each of the products etc. The authority also asked them to provide further information as per prescribed proforma by July 9, 2007 at the latest. On receipt of the required information, the authority will consider further steps under Section 14 or other provisions of the MRTPO 1970.
The authority recalled its order with respect to M/s A.G. Spiral imposing a penalty of Rs 100,000 and vacated its notice to ARV Industries (both producers of treated drinking water) after considering the facts and arguments submitted by the representatives of these companies, MCA added.