Khantex Group sued for inflating cotton seed prices
The Khantex Group is currently under investigation by the Competition Committee for allegedly manipulating cotton seed prices, resulting in substantial financial gain. The probe was initiated after the committee’s regional supervisory office in Andijan conducted a thorough analysis of the company’s sales data regarding technical seeds.
According to the findings, Khantex Group sold 8,000 tons of cotton seeds on the stock exchange in March and April 2024, in accordance with the approved sales schedule. However, discrepancies were discovered in the company’s reporting. In March, Khantex Group did not offer 3,000 tons of seeds for sale on the exchange, and in April, they only sold 3,000 tons instead of the planned 5,000 tons.
Furthermore, the Competition Committee accused Khantex Group of selling seeds at inflated prices. The company initially set a starting price of 2.6 million UZS per ton and later sold a batch of seeds at 2.605 million UZS per ton in February. By April, the price had increased to 2.652 million UZS per ton, resulting in an estimated revenue of 380 million UZS above the average exchange rates.
The Competition Committee has deemed Khantex Group’s actions as price manipulation, violating regulations governing the sale of highly liquid and monopolistic goods. A special commission has initiated proceedings against the company for breaching regulations and Article 29 of the Law on Competition.
In response to these allegations, authorities have taken measures against Khantex Group, including issuing a formal directive to prevent similar actions in the future. The investigation is ongoing, and further actions may be taken based on the committee’s findings.
