CCI to probe Odisha State Civil Supplies Corp for anti-competitive practices

The Competition Commission of India on Friday ordered a detailed investigation against Odisha State Civil Supplies Corporation Ltd for alleged unfair business ways with respect to procurement of custom milling services for rice.

For the case, the regulator considered the market for "procurement of custom milling services for rice in state of Odisha" as the relevant one. It also found that the entity is "prima-facie" dominant in the relevant market.

The investigation has been ordered on a complaint filed by Odisha-based Maa Metakani Rice Industries, which is into rice (paddy) milling and production of rice, among others. It acts as a custom milling agent of Odisha State Civil Supplies Corporation.

According to the watchdog, the main allegations of market abuse relate to conduct of the entity in non-settlement of CMR dues of the Maa Metakani Rice Industries and imposition of unfair condition by it upon millers for entering into agreement for custom milling for Kharif Marketing Season (KMS) 2018-19.

CMR refers to custom milled rice.

In its 14-page order, the CCI said that from the documents placed on record, it appears there is high-handedness on the part of Odisha State Civil Supplies Corp.

"The Commission, at this stage, without delving into the specifics of the abuse, as alleged, is of the prima facie opinion that the issue requires investigation," it noted.

Further, the watchdog said the allegation of the arbitrary disclosure of criteria for selection of custom millers for participation in rabi season KMS 2017-18, also requires to be investigated by the director general (DG).

The DG is the investigation arm of the CCI.

The regulator also made it clear that nothing stated in the order shall be tantamount to final expression of opinion on the merits of the case.