Competition Commission of Pakistan issues notices to 10 sugar mills over collusion
CCP Investigates Sugar Mills Over Alleged Price Fixing and Crushing Delay
Table of Contents
Competition Concerns in Punjab’s Sugarcane Market
The Competition Commission of Pakistan (CCP) has issued show-cause notices to ten sugar mills operating in Punjab province, alleging collusion in delaying the start of the sugarcane crushing season and fixing a procurement price. The action, announced on November 29, 2025, centers around a coordinated effort to manipulate market dynamics to the detriment of sugarcane farmers.
The CCP’s examination revealed that representatives from the mills convened a meeting on November 10, 2025, hosted by Fatima Sugar Mills. During this meeting, participants reportedly agreed to postpone the commencement of crushing operations until November 28, despite an officially mandated start date of November 15 set by the Punjab Sugarcane Commissioner.
Key Mills Involved in the Investigation
The meeting was chaired by Rana Jameel Ahmad Shahid, resident director of Fatima Sugar Mills. Attendees included representatives 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 remotely.
These actions potentially violate section 4 of the Competition Act 2010, which prohibits agreements or arrangements between market players designed to fix prices or coordinate business decisions.Such conduct is considered anti-competitive and illegal under Pakistani law.
Imbalance of Power and Impact on farmers
The CCP highlighted a important power imbalance between sugar mill owners and the farmers who supply them with sugarcane. Ideally, the price of sugarcane should be determined through individual negotiations reflecting supply and demand. However, the CCP alleges the mills collectively fixed the price at Rs400 per 40kg, effectively suppressing farmers’ bargaining power.
This coordinated price-fixing could lead to reduced income for sugarcane farmers and potentially distort the overall sugarcane market. The CCP’s intervention aims to restore fair competition and protect the interests of agricultural producers.
CCP Demands Explanation
The CCP has directed the ten sugar mills to submit a written response within 14 days, explaining why legal proceedings should not be initiated against them. The commission is seeking justification for the alleged prohibited agreements, thier impact on the sugarcane market, and evidence of any undue commercial advantage gained through the coordinated delay in crushing and price fixing.
This investigation underscores the CCP’s commitment to enforcing competition laws and ensuring a level playing field for all market participants in Pakistan’s agricultural sector.