The Competition Commission of Pakistan (CCP) has taken serious action against alleged cartel behaviour in the sugar industry. The regulator has issued show cause notices to ten Punjab-based sugar mills for colluding on the sugarcane crushing date and fixing the procurement price at Rs 400 per maund. The move aims to curb anti-competitive practices that harm farmers and distort the market.
Mills Accused of Fixing Cane Price and Delaying Crushing Season
According to the CCP review, representatives of these sugar mills held a joint meeting on November 10, 2025, at Fatima Sugar Mills. The meeting was chaired by Rana Jameel Ahmad Shahid, Resident Director of Fatima Sugar Mills. During the meeting, participants agreed to delay the crushing season to November 28, despite the official date of November 15 announced by the Punjab Sugarcane Commissioner.
The mills also collectively fixed the sugarcane purchase price at Rs 400 per maund, violating the principles of free market competition. Representatives of Sheikhoo Sugar Mills, Thal Industries Corporation, Tandlianwala Sugar Mills (Rehman Hajra Unit), JK-1 Sugar Mills, Ashraf Sugar Mills, and Kashmir Sugar Mills attended in person. Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills joined online.
Under Section 4 of the Competition Act, 2010, any agreement between competitors to fix prices, coordinate decisions, or limit market forces is strictly prohibited. The CCP noted that sugar mills already hold significant bargaining power over farmers. Instead of allowing prices to be determined through normal supply-and-demand negotiations, the mills engaged in collective and unilateral price fixing, undermining fair competition.
CCP Demands Explanations and Warns Against Cartelisation
The CCP has directed all ten sugar mills to submit a written response within 14 days. They must explain why legal proceedings should not be initiated against them for entering into a prohibited agreement, manipulating the sugarcane market, and attempting to secure undue commercial benefit through a coordinated delay in crushing.
Delaying the start of the crushing season can disrupt supply chains and create artificial sugar shortages, potentially increasing retail sugar prices. Such practices, the CCP warned, directly impact consumers and destabilise the market.
CCP Chairman Dr. Kabir Ahmed Sidhu issued a strong warning to all industry groups. He said that no association or group of competitors will be permitted to form cartels or engage in collective decision-making that harms consumers. He emphasized that the CCP will take strict action against any entity involved in anti-competitive behaviour and impose penalties where necessary.
