CCP urged to act against cartelisation

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has complained to the Competition Commission of Pakistan (CCP) about the cartelisation of middlemen, who increased prices rice varieties on each rupee depreciation, making it difficult for SME rice exporters to honour their commitments.

UNISAME President Zulfikar Thaver said the middlemen were taking undue advantage of the situation. “This disabled SME exporters from earning from their commitments, and many SME exporters not carrying inventories had to suffer continued losses due to costly purchases to honour their bookings,” he added.

UNISAME has urged CCP to take notice of the matter and conduct enquiry and question the middlemen on the day to day increase in prices, despite the fact that huge quantity of rice was hoarded by the millers and middlemen.

“The paddy is purchased by the middlemen and the millers at harvest time, and they stock the paddy for the entire season. There is no justification for increasing prices in this manner,” a UNISAME statement said. There was no shortage or any extraordinary increase in demand, it added. It alleged that the middlemen were taking a collective decision as a cartel to take advantage of the depreciation, which was depriving SMEs from honouring their external commitments.