ISLAMABAD (MNN); The Competition Commission of Pakistan has served show cause notices to ten sugar mills in Punjab for allegedly colluding to delay the start of the crushing season and jointly fixing the sugarcane procurement price at 400 rupees per maund.
According to the Commission’s findings, representatives of the mills held a meeting on November 10, 2025, at Fatima Sugar Mills, where they mutually agreed to begin crushing on November 28 instead of the government-notified date of November 15.
The mills also collectively decided to fix the purchase price of sugarcane at 400 rupees per maund, a move deemed collusive and in violation of competition laws.
The meeting was chaired by Rana Jameel Ahmad Shahid of 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. Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills participated online.
Under Section 4 of the Competition Act 2010, coordination between competitors over business decisions or pricing is prohibited and considered a violation of the law.
The CCP noted that farmers already face unequal bargaining power when negotiating cane prices with mill owners. Instead of allowing market forces to determine prices individually, all mills collectively imposed the 400-rupee rate for 40 kg, undermining fair competition.
The Commission has instructed the mills to submit their written replies within 14 days, explaining why legal action should not be taken for entering prohibited agreements, delaying crushing, and securing unfair commercial benefits. Delayed crushing at the beginning of the season can disrupt supply and potentially trigger artificial price hikes in the sugar market.
CCP Chairman Dr Kabir Ahmed Sidhu warned that no business group or association will be allowed to form cartels or make decisions that manipulate markets, adding that strict action will follow against any entity involved in anti-competitive practices.
