ISLAMABAD – The Competition Commission of Pakistan (CCP) has issued show-cause notices to 10 sugar mills in Punjab for allegedly colluding on the start of the sugarcane crushing season and fixing procurement prices at Rs400 per 40kg. The CCP said the action follows findings of coordinated decision-making that violates competition laws.
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According to the commission, representatives of the mills held a meeting on November 10, hosted by Fatima Sugar Mills, where they agreed to begin crushing on November 28, delaying the official start date of November 15 set by the Punjab Sugarcane Commissioner. The mills also allegedly agreed to fix the cane purchase price at Rs400 per 40kg, giving rise to collusive practices.
پنجاب کی 10 شوگر ملوں کو کارٹل بنانے پر شوکاز نوٹس جاری،جس شوگر مل میں خفیہ میٹنگ کی گئی اسکو بھی نوٹس جاری،ویلڈن
— Saif Awan (@saifullahawan40) November 28, 2025
The meeting was chaired by Rana Jameel Ahmad Shahid, resident director of Fatima Sugar Mills, and attended in person 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 joined online.
CCP Issues Show Cause Notices to Punjab Sugar Mills Over Alleged Collusion
CLICK HERE: https://t.co/nLNNk9anEU#CCP #Issues #ShowCause #Notices #Punjab #SugarMills #Alleged #Collusion #Lahore #TTI pic.twitter.com/K61Az8eSeW
— The Truth International (@ttimagazine) November 28, 2025
Under Section 4 of the Competition Act 2010, any agreement between market players to fix prices or coordinate business decisions is prohibited. The CCP noted that sugar mill owners hold significantly more bargaining power than farmers. Prices, the commission said, should be determined individually based on market supply and demand, rather than through collective decisions.
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Taking notice of the alleged collusion, the CCP has directed all 10 mills to submit written explanations within 14 days on why legal proceedings should not be initiated against them. The commission warned that such coordination to influence the sugarcane market could lead to undue commercial advantage and violations of the competition law.