The Competition Commission of Pakistan (CCP) has rescheduled the hearing of the sugar cartelisation case to September 22–25, following a request from over 70 sugar mills.Â
According to media reports, the mills requested the delay due to the Supreme Court holidays, which would have hindered their ability to attend. In response, the CCP stated that the hearing would only be postponed once to ensure justice, and no further delays would be granted.
The case, which involves allegations of anti-competitive conduct and cartelisation by the Pakistan Sugar Mills Association (PSMA) and its member mills, had originally been scheduled for August 4-7.Â
However, the Competition Appellate Tribunal (CAT) had previously instructed the CCP to rehear the case, following the tribunal’s decision to annul the previous penalty after questioning the legality of the casting vote exercised by the former chairperson in the original ruling.
The CCP had imposed a penalty of Rs44 billion on the PSMA and its members in 2021 for violating competition laws. This penalty was contested, leading to the remanding of the case for rehearing by the CCP.Â
Notices for the rehearing were issued to the PSMA and member mills on July 9. These notices direct all concerned parties to nominate their representatives and present relevant evidence at the hearing.
The investigation into the sugar sector, which began in 2020, revealed cartel-like behavior by the PSMA, which was accused of manipulating prices by controlling sugar exports and delaying imports to maintain artificially high prices.Â
The CCP’s inquiry report concluded that the sugar price hikes, including a notable increase in 2019, were directly linked to these actions. The inquiry also found evidence of continued anti-competitive behavior since 2010, including raids on PSMA and JDW Sugar Mills.
The hearing will proceed on a daily basis after the September rescheduling, with the CCP determined to address the allegations of cartelisation and ensure compliance with competition laws.
