The Competition Commission of Pakistan (CCP) has issued show-cause notices to ten sugar mills in Punjab for allegedly fixing sugarcane prices and delaying the start of the crushing season. The CCP found that the mills collectively set the sugarcane procurement price at Rs. 400 per maund and postponed crushing from November 15 to November 28.
According to the CCP, the decision was made during a meeting on November 10 at Fatima Sugar Mills. The meeting was chaired by Rana Jameel Ahmad Shahid. Present in person were representatives from Sheikhoo Sugar Mills, Tandlianwala Sugar Mills (Rehman Hajra Unit), Thal Industries Corporation, JK One Sugar Mills, Ashraf Sugar Mills, and Kashmir Sugar Mills. Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills joined online.
The CCP said that this coordinated action violates Section 4 of the Competition Act, 2010, which prohibits price fixing, collusion, and other anti-competitive practices. Sugarcane prices should normally be negotiated individually between farmers and mills, reflecting market conditions. By setting a fixed rate, the mills denied farmers the chance to negotiate, the CCP noted.
The commission also highlighted that delaying crushing can artificially restrict supply, create shortages, and push up sugar prices for consumers. This type of market manipulation undermines fair competition and harms both producers and consumers.
All ten sugar mills have been ordered by the CCP to submit written explanations within 14 days, explaining why enforcement action should not be taken against them. The CCP will review their responses before deciding on further action.
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The move demonstrates the CCP’s commitment to ensuring fair competition in Pakistan’s sugar industry. By taking action against price fixing and collusion, the commission aims to protect farmers, stabilize market prices, and ensure transparency in the sector.
