ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued show-cause notices to 10 sugar mills in Punjab for colluding on the start of the crushing season and fixing the sugarcane procurement price at Rs400 per 40kg.

The commission’s review found that the representatives of these mills held a meeting on Nov 10 this year, hosted by Fatima Sugar Mills, where they collectively decided to begin crushing on Nov 28 instead of the officially notified date of Nov 15 set by the Punjab Sugarcane Commissioner. The CCP said the mills also agreed to fix the cane purchase price at Rs400 per 40kg, which amounts to collusive decision-making.

The meeting was chaired by Rana Jameel Ahmad Shahid, resident director of Fatima Sugar Mills, and attended by 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. Siraj Sugar Mills, Two Star Sugar Mills and Haq Bahoo Sugar Mills joined online.

Under Section 4 of the Competition Act 2010, any agreement or arrangement between market players to fix prices or coordinate business decisions is prohibited and constitutes a violation of the competition law.

The CCP noted that there is a significant imbalance in negotiating power between sugar mill owners and farmers. Ideally, the sugarcane price should be determined through individual negotiations based on market demand and supply. Instead, the mills collectively fixed the price at Rs400 per 40kg.

Taking notice of this collusion, the CCP has directed all 10 mills to submit a written response within 14 days explaining why legal proceedings should not be initiated against them for entering into prohibited agreements, influencing the sugarcane market and gaining undue commercial advantage through a coordinated delay in crushing.

Published in Dawn, November 29th, 2025