CCP to resume probe against edible oil, ghee makers

ISLAMABAD: Competition Commission of Pakistan (CCP) is all set to resume its probe into the cooking oil and ghee sector's suspected cartelisation behaviour, following an unjustified massive increase in the prices of these commodities, a statement said on Tuesday.

According to an official statement, the probe is back on track because Supreme Court of Pakistan admitted for hearing its leave to appeal against and suspended the decision of Islamabad High Court dated September 14, 2021.

As per details, On July 30, 2020, the CCP, taking notice of an unexplained increase in the retail prices of vegetable oil and ghee initiated an enquiry under Section 37 (1) of the Competition Act, 2010 to ascertain prima facie violations of Section 3 and/or Section 4 of the Act in the edible oil and ghee industry.

The CCP found the increase in ghee/cooking oil prices was unusual as palm oil prices, the primary raw material in its manufacturing, was facing a downward trend internationally during January-May 2020, the statement said.

It said the CCP enquiry team sought information and relevant data from the industry players; however, upon non-cooperation from some companies, the competition watchdog passed a ‘Call for Information’ order under Section 36 of the Act in November 2020. “However, one of the companies i.e., Dalda Foods, obtained a stay order from Islamabad High Court against the Section 36 order for providing information to the Commission on November 18, 2020. Later, Islamabad High Court through its order dated September 14, 2021 ruled in favour of the petitioner,” the statement said.

It said the Commission immediately filed a leave to appeal against the order before the august Supreme Court of Pakistan and the case was fixed for hearing on November 22, 2021.

The Supreme Court granted leave to appeal to CCP in order to consider the various important legal questions, which had arisen in relation to the impugned judgment, it added.

“In the meantime, the Supreme Court suspended the operation of the judgment of Islamabad High Court dated September 14, 2021, till the final decision of CCP’s appeal before the Supreme Court.”

Accordingly, the CCP was allowed to resume its inquiry.

It should be noted that on July 8, 2021, the CCP carried out four search and inspection operations at the offices of the Pakistan Vanaspati Manufacturers Association (PVMA) in Islamabad, Lahore and Karachi, and impounded several documents and computer-stored information.

“Now it is hoped the Commission will conclude its inquiry and then the law of the land will take its course to penalise those who had allegedly established cartelisation to exploit the situation for earning lofty profits,” the CCP said.