Islamabad, November 29, 2025 – The Competition Commission of Pakistan (CCP) has issued show cause notices to ten sugar mills in Punjab for allegedly colluding on the start of the crushing season and fixing the sugarcane procurement price at Rs. 400 per maund.
According to CCP findings, representatives of the mills met on November 10, 2025, at Fatima Sugar Mills, where they collectively decided to delay the crushing start date to November 28, contrary to the Punjab Sugarcane Commissioner’s official notification of November 15. The meeting also included a coordinated decision to fix the cane price, violating Section 4 of the Competition Act, 2010, which prohibits agreements that manipulate prices or restrict fair competition.
The meeting was chaired by Rana Jameel Ahmad Shahid, Resident Director of Fatima Sugar Mills, and attended by key representatives of Sheikhoo Sugar Mills, Thal Industries Corporation, Tandlianwala Sugar Mills (Rehman Hajra Unit), JK-1 Sugar Mills, Ashraf Sugar Mills, Kashmir Sugar Mills, while Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills participated online.
CCP noted that such collusion undermines fair market competition, as sugarcane prices should ideally be determined individually by mills and farmers through supply-demand negotiations. Coordinated price-fixing and delays in crushing disrupt market supply, risking artificial sugar shortages and higher retail prices.
The CCP has directed all ten mills to submit written responses within 14 days, explaining why legal action should not be taken. CCP Chairman Dr. Kabir Ahmed Sidhu warned, “No association or group of competitors will be allowed to form cartels or make collective commercial decisions that harm consumers. Strict action will be taken against anti-competitive practices.”