September 12, 2023

 

Bangladesh to prosecute 10 entities for egg market profiteering

The Bangladesh Competition Commission is taking legal action against six companies and four trade bodies for alleged profiteering in the egg market, citing market manipulation through SMS communications, The Business Standard reported.

 

The commission is now in the process of filing a case against these organisations, including Kazi Farms, Paragon Poultry, Diamond Egg, Peoples Poultry and Hatchery, Naba Farms, United Egg Sale Point, Bangladesh Poultry Industries Central Council, Bangladesh Poultry Industries Association, Bangladesh Poultry Farm Protection National Council, and Poultry Professionals Bangladesh.

 

These actions will be pursued under the Bangladesh Competition Act.

 

The accused entities have denied these allegations. Khandkar Mohammad Mohsin, secretary general of the Bangladesh Poultry Industries Association, said that the state is suing to avoid responsibility, raising concerns about the shutdown of 60,000 farms and questioning who will be held accountable for these closures.

 

Mohsin attributed the recent rise in egg prices to various factors, including the deaths of thousands of chickens due to extreme heat, reduced fish supply resulting from continuous rains, and increased demand for eggs during this period.

 

The Competition Commission had previously filed a case in September 2022 against CP, Paragon, Kazi, Diamond Egg, and Tejgaon Egg Traders Association President Md Amanat Ullah in response to egg market instability. This case is still ongoing.

 

In August, egg prices experienced sudden spikes, with the cost of a dozen eggs surging from BDT 45 (~US$1.32; BDT 100 = US$0.91) to BDT 170 (~US$1.55) and even higher in some locations. In response, the fisheries and livestock ministry revealed the production cost of each egg to be BDT 10.50 (~US$0.096) and warned against retail prices exceeding BDT 12 (~US$0.11) per egg, gradually normalizing prices.

 

Egg producers and traders attributed the price hikes to decreased production due to farm closures and increased demand, resulting from supply shortages.

 

Furthermore, the commission has called for citizen surveillance and regulatory oversight on wholesalers and corporate groups to prevent middlemen from manipulating egg prices.

 

-      The Business Standard