Competition Commission of Pakistan says cane prices should ideally be determined through negotiations between each mill and local farmers’ representatives, taking into account supply and demand
ISLAMABAD: (UrduPoint/Pakistan Point News-Nov 28th, 2025) The Competition Commission of Pakistan (CCP) has issued showcause notices to ten sugar mills in Punjab for allegedly forming a cartel to delay sugarcane crushing and fix cane prices at Rs 400 per maund.
The CCP said that the mills held a meeting at Fatima Sugar Mills on November 10, where representatives from Fatima Sugar Mills, Sheikhu Sugar Mills, Thal Industries Corporation, Tandlianwala Sugar Mills (Rahman Hajra Unit), JK One Sugar Mills, Ashraf Sugar Mills, and Kashmir Sugar Mills participated in person, while representatives from Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahu Sugar Mills joined online. The meeting, chaired by Rana Jamil Ahmed Shahid, Resident Director of Fatima Sugar Mills, reportedly decided collectively to start cane crushing from November 28 and set the cane price at Rs 400 per maund.
Under Section 4 of the Competition Act 2010, any agreement among competitors to fix prices or make joint business decisions is illegal. Notably, the Punjab Sugarcane Commissioner had directed mills to begin crushing from November 15.
The CCP noted a clear imbalance of power between sugar mill owners and farmers. Cane prices should ideally be determined through negotiations between each mill and local farmers’ representatives, taking into account supply and demand. Instead, the mills allegedly colluded to unilaterally fix the price at Rs 400 per 40 kg, disrupting the market’s natural mechanism.
In light of the evidence, the Commission has directed the mills to submit a written response within 14 days, explaining why legal action should not be taken against them for anti-competitive agreements, manipulating the cane market, and obtaining unfair commercial advantage through delays in crushing.
The CCP warned that delays in the initial sugarcane season could disrupt sugar supply, create artificial shortages, and lead to higher retail sugar prices.
Chairman CCP Dr. Kabir Ahmed Sidhu emphasized that no trade association or business platform should be used for cartel formation or collective business decisions, and strict action will be taken against any association involved in anti-competition activities.
