Islamabad:
The Competition Commission of Pakistan (CCP) has issued show-cause notices to 10 sugar mills in Punjab for colluding in connection with the commencement of the crushing season and fixing the supply price of sugarcane at Rs 400 per maund.
A CCP review found that representatives of these mills held a meeting on November 10, 2025, where they decided to start crushing on November 28, instead of the date officially notified by the Punjab Sugarcane Commissioner of November 15.
The meeting was chaired by the 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, while Siraj Sugar Mills and Siraj Sugar Mills online.
Under Section 4 of the Competition Act 2010, any agreement or arrangement between market players to fix prices or co-ordinate business decisions is strictly prohibited and constitutes a breach of competition law.
There is a significant imbalance in bargaining power between sugar mill owners and farmers. Ideally, the sugarcane price should be determined through individual negotiations between each factory and farmer, based on the natural interaction of supply and demand.
However, instead of allowing market forces to work, all the mill owners collectively and unilaterally fixed the price at Rs 400 per 40 kg.
The CCP ordered 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 obtaining an unfair commercial advantage through coordinated delay in crushing.
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