The Competition Commission of Pakistan (CCP) has imposed hefty fines totalling Rs375 million on six major fertiliser companies and their trade association for engaging in anti-competitive practices.
In a suo motu inquiry, the CCP found that Fatima Fertiliser Limited, Fauji Fertiliser Company Limited, Fauji Fertiliser Bin Qasim Limited, Engro Fertiliser Company Limited, Agritech Limited, and their association, the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), colluded to fix urea prices under the guise of an “awareness campaign.” Each company was fined Rs50 million, while FMPAC was penalised Rs75 million.
The CCP stated that the companies violated Section 4 of the Competition Act, 2010, by manipulating prices, harming farmers during crucial Rabi and Kharif seasons, and distorting market competition. Despite claims of independent pricing, the manufacturers failed to justify their synchronised price hikes. The Commission also dismissed their defence under the “state action doctrine,” ruling that no government directive authorised such collusion.
The bench, led by Dr Kabir Ahmed Sidhu and Mr Salam Amin, concluded that the companies exploited a government advisory on urea pricing to artificially control the market, undermining fair competition.