The Competition Commission of Pakistan (CCP) has issued show-cause notices to ten sugar mills in Punjab. The mills are accused of forming a cartel to delay the start of sugarcane crushing and to fix the purchase price of sugarcane at Rs 400 per maund.

CCP Chairperson Dr. Kabir Ahmed Sidhu warned that no trade body should be used as a platform for making collective commercial decisions. He said strict action will be taken against anyone found violating competition rules. According to the CCP, representatives of the mills allegedly met on 10 November and agreed to begin crushing on 28 November, while setting a uniform price of Rs 400 per 40 kilograms of sugarcane.

The CCP stated that any agreement to fix prices or coordinate business decisions is a violation of Section 4 of the Competition Act, 2010. The commission also noted a clear imbalance of power between mill owners and farmers during price negotiations.

The Punjab Sugarcane Commissioner had earlier ordered mills to begin crushing from 15 November. The mills have now been directed to submit a written explanation within 14 days, explaining why action should not be taken against them for entering prohibited agreements, manipulating the sugarcane market, and delaying crushing to gain unfair commercial advantage. The CCP warned that delaying the crushing season could disrupt sugar supply and push up retail prices.