Khantex Group faces legal action over inflated cotton seed prices

According to the committee, Khantex Group sold 8,000 tons of cotton seeds on the stock exchange during March and April 2024, in line with the approved sales schedule. However, the investigation revealed discrepancies in the company’s reporting. In March, Khantex Group failed to offer 3,000 tons of seeds for sale on the exchange, and in April, it sold only 3,000 tons, falling short of the planned 5,000 tons by 2,000 tons.

Additionally, 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 sold a batch of seeds at 2.605 million UZS per ton in February. In April, the price rose to 2.652 million UZS per ton. The overall revenue from these transactions above the average exchange rates is estimated to be around 380 million UZS.

The Competition Committee characterized Khantex Group's actions as price manipulation in violation of regulations governing the sale of highly liquid and monopolistic goods. A special commission has initiated proceedings against the company for violating the regulations, as well as Article 29 of the Law on Competition.

In response to these findings, the authorities have taken measures against Khantex Group, including a formal directive to prevent similar actions in the future.