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The Competition Commission of Pakistan (CCP) has taken decisive action against the “Sugar Cartel”. Today, November 29, 2025, the regulatory body issued show-cause notices to 10 sugar mills in Punjab. These notices address allegations of collusion regarding the start of the crushing season and the fixing of sugarcane procurement prices.
According to the CCP’s review, representatives from these mills held a meeting on November 10, 2025. During this gathering, they collectively decided to commence crushing on November 28. This decision directly ignored the Punjab Sugarcane Commissioner’s officially notified date of November 15. Furthermore, the mills jointly agreed to fix the cane purchase price at Rs. 400 per maund. This act constitutes collusive decision-making.
The Collusive Meeting
Fatima Sugar Mills hosted the controversial meeting, and their Resident Director, Rana Jameel Ahmad Shahid, chaired it. Several key industry players attended the session.
Representatives from the following mills were physically present:
- Fatima Sugar Mills
- Sheikhoo Sugar Mills
- Thal Industries Corporation
- Tandlianwala Sugar Mills (Rehman Hajra Unit)
- JK-1 Sugar Mills
- Ashraf Sugar Mills
- Kashmir Sugar Mills
Additionally, Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills joined the meeting online.
Under Section 4 of the Competition Act, 2010, market players cannot agree to fix prices or coordinate business decisions. Therefore, this arrangement is strictly prohibited. Ideally, individual negotiations between mills and farmers should determine sugarcane prices based on supply and demand.
However, the mill owners unilaterally fixed the price at Rs. 400 per 40 kg. This creates a significant imbalance in negotiation power between the owners and the farmers. Consequently, the CCP has directed all ten mills to submit a written response within 14 days. They must explain why the commission should not initiate legal proceedings against them.
Market Impact & Warnings by CCP
The coordinated delay in crushing poses a serious threat to the market. It can disrupt the sugar supply, potentially leading to artificial shortages and a rise in retail prices.
Taking cognisance of this, CCP Chairman Dr. Kabir Ahmed Sidhu issued a strict warning. He stated:
No association or group of competitors will be allowed to form cartels or make collective commercial decisions that harm consumers and distort markets.
The CCP has vowed to take firm action and penalise any entity found engaging in such anti-competitive behaviour.
