ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued show-cause notices to ten sugar mills in Punjab for allegedly colluding to delay the start of the crushing season and collectively fixing the sugarcane procurement price at Rs400 per maund.
According to the CCP, its inquiry found that representatives of these mills met on November 10, 2025, at a session hosted by Fatima Sugar Mills. During the meeting, the mills purportedly agreed to begin the crushing season on November 28—despite the Punjab Sugarcane Commissioner’s officially notified date of November 15. They also allegedly fixed a uniform cane procurement price of Rs400 per 40 kg, a practice prohibited under competition law.
The meeting was chaired by Rana Jameel Ahmad Shahid, Resident Director at Fatima Sugar Mills, and attended by officials from Sheikhoo Sugar Mills, Thal Industries Corporation, Tandlianwala Sugar Mills (Rehman Hajra Unit), JK-1 Sugar Mills, Ashraf Sugar Mills, and Kashmir Sugar Mills. Representatives from Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills participated online.
The CCP stated that collective decisions regarding prices or coordinated commercial conduct violate Section 4 of the Competition Act, 2010, which strictly prohibits agreements between competitors that restrict competition.
The Commission noted the longstanding imbalance in bargaining power between sugar mill owners and farmers, stressing that cane price should ideally be determined through individual negotiations based on demand and supply. Instead, the mills allegedly acted jointly to impose a uniform rate, undermining competitive market forces.
Taking notice of the matter, the CCP has directed all ten mills to submit written replies within 14 days, explaining why legal proceedings should not be initiated for entering into prohibited agreements, distorting the cane procurement market, and securing undue commercial benefits by delaying the crushing season. Such delays, the CCP warned, can disrupt market supply, potentially resulting in artificial shortages and higher retail sugar prices.
CCP Chairperson Dr. Kabir Ahmed Sidhu also issued a stern warning to business associations and industry groups, stating: “No association or group of competitors will be allowed to form cartels or make collective commercial decisions that harm consumers and distort markets. CCP will take firm action against any entity found engaging in such anti-competitive behaviour.”
