Kazi Farms, Saguna Food fined Tk8.44cr for manipulation of poultry market

The Bangladesh Competition Commission has fined Kazi Farms Group and Saguna Food and Feeds on charges of market manipulation causing abnormal rise in broiler prices last year.  

"Kazi Farms has been fined Tk5 crore and Suguna Foods Tk3.44 crore in the two cases filed by the commission officials last year," Md Hafizur Rahman, member of the competition commission told The Business Standard on Monday.

Md Hafizur Rahman, speaking to TBS, stated, "These two companies have been fined due to the commission's finding of abnormal price hikes of broiler chicken resulting from syndication."

In this regard, a management official of Kazi Farms said, "Kazi Farms is an honest and law-abiding business, and has never engaged in collusion or price fixing. Our auction process is a transparent, fair means of discovering the daily market price. We will appeal this decision and expect to be found innocent."

In August 2022, the broiler chicken market witnessed an unprecedented price surge, with broiler chicken prices skyrocketing from Tk160-170 per kg to Tk230 per kg.

During this period, the commission initiated separate legal actions against six companies. Among the other companies facing charges are Alal Poultry and Fish Feed, Nourish Poultry and Hatchery, Paragon Poultry, and CP Bangladesh.

The commission has now pronounced its verdict, imposing a total fine of Tk8.44 crore on these two entities. 

Kazi Farms and Saguna Food have to pay the fine within 10 working days. Failure to comply will result in an additional daily penalty of Tk1 lakh.

Both companies retain the option to appeal the commission's decision. In such cases, they must deposit 25% of the fine amount. Alternatively, they can appeal to the commerce ministry or file a writ petition with the High Court to challenge the commission's ruling.

Kazi Zahin Hasan, director of Kazi Farms Limited, was not available for comment in this regard. Text messages were also sent to his cell phone and WhatsApp but received no response.

The year 2022 witnessed a surge in the prices of raw materials due to the Russia-Ukraine war, resulting in complications in raw material imports and a general increase in commodity prices, including eggs and chickens. 

At that time, the commission filed 36 cases against companies and individuals involved in the production and marketing of rice, flour, eggs, broiler chicken, and toiletries for the abnormal rise of price hikes. Prominent business conglomerates such as Unilever, Pran, Square, ACI, Akij, Bashundhara, S Alam Group, Meghna, TK Group, Nurjahan Group, and Citi Group were among the defendants in these cases.

According to the commission sources, the process of rendering judgments against the remaining institutions is ongoing. The verdicts for most of these cases are in the final stages of proceedings, with starting with the two companies mentioned earlier.