Kazi Farms Group

Controversy

On 22 September 2022, the Bangladesh Competition Commission filed a case against Kazi Farms for destabilizing the stable market by increasing the price of eggs at a higher rate than normal. Hearing the case four days later, the Bangladesh Competition Commission criticized the company for following a "strange" auction policy for fixing the price of eggs. In this auction system, the company finalizes a price after the dealers and distributors bid on the base price.

Kazi Farms replied that egg prices had indeed spiked abnormally for a week, but the reason was a shortage of trucks following a national increase in the price of diesel.

Singaporean economist Indranil Chakraborty examined Kazi Farms' auctions and found them to be a fair and reasonable means of selling agricultural commodities such as eggs, which typically fluctuate daily due to supply and demand.

Kazi Farms asserted that price fluctuations of agricultural commodities like eggs and chicken was a normal phenomenon with a standard economic explanation through the Cobweb model.

Kazi Farms also asserted that their auction procedure was a type of Vickrey-Clarke-Groves auction, which was well established.