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 procurement price of sugarcane at Rs. 400 per maund.

According to CCP's review, representatives of the mills held a meeting on November 10, 2025, hosted by Fatima Sugar Mills, where they collectively decided to begin crushing from November 28 instead of the officially notified date of November 15. The mills also mutually agreed to fix the cane purchase price at Rs. 400 per 40 kg - a clear case of collusive decision-making under the Competition Act, 2010.

The meeting was chaired by Rana Jameel Ahmad Shahid, 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. Siraj Sugar Mills, Two Star Sugar Mills, and Haq Bahoo Sugar Mills participated online.

CCP noted that instead of allowing individual negotiations between farmers and mills - a process intended to be guided by natural market forces - the mills collectively imposed a unilateral price, harming both farmers and market competition.

Taking notice of the violation, CCP has directed the ten sugar mills to submit written replies within 14 days, explaining why legal proceedings should not be initiated against them for entering into prohibited agreements, manipulating the sugarcane market, and gaining undue commercial advantage through a coordinated delay in crushing. Such delays can lead to supply disruptions and potentially create artificial shortages that trigger increases in retail sugar prices.

Chairman CCP, Dr. Kabir Ahmed Sidhu, warned all industry groups and business associations that no cartelisation or collective commercial decisions that distort markets or harm consumers will be tolerated. He emphasized that the CCP will take firm action against all entities involved in anti-competitive behaviour.