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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 fix the sugarcane procurement price at Rs 400 per maund.
CCP’s preliminary review found that on November 10, 2025 the concerned mills held a meeting at Fatima Sugar Mills where they jointly decided to begin crushing on November 28, rather than the official start date of November 15 set by the provincial authority. During that meeting, the mills also agreed to fix the sugarcane purchase price uniformly at Rs 400 per maund.
Such coordinated behaviour violates Section 4 of the Competition Act, 2010, which forbids agreements that fix prices or otherwise restrict competition. The CCP has asked the ten mills to submit a written explanation within 14 days as to why legal action should not follow.
Delaying the crushing season can harm farmers — sugarcane dries in fields, reducing yield and hurting growers’ income. It can also create artificial sugar shortages, driving up retail prices and affecting consumers nationwide.
CCP’s move underscores growing scrutiny on the sugar industry. Earlier this year the Competition Appellate Tribunal (CAT) ordered a rehearing of a previous cartel-case that had imposed a Rs 44 billion fine on the mills — a decision the Supreme Court of Pakistan invalidated on procedural grounds.
Regulators and consumers alike will watch closely how the mills respond — the outcome could reshape market behaviour in the sugar sector.
