The Competition Commission of Pakistan (CCP) has issued a stern warning to sugar mills following the government’s failure to control sugar prices, which continue to exceed the stipulated rate of Rs 130 per kilogram, soaring beyond Rs 180 in many markets. With a forecasted increase in sugar consumption to 6.7 million tons, the CCP declared its intent to curb any anti-competitive behavior harming consumers.
The CCP highlighted significant concerns about price manipulation, pointing out that an additional Rs30 per kilogram in retail price could generate over Rs200 billion in profit across the supply chain. The commission assured strict enforcement measures against any unfair practices, as it has consistently worked to address cartelization within the sugar industry.
An investigation launched in 2020 revealed collusion by sugar mills under the Pakistan Sugar Mills Association (PSMA) for price-fixing and supply control. This led to raids and a record fine of Rs 44 billion. However, the recovery process stalled due to legal challenges. Over the years, the CCP has pushed recommendations, including deregulating the sugar sector and adopting market-driven pricing, to foster competition and transparency.
Despite past setbacks, the CCP remains committed to protecting consumers and encouraging fair practices in Pakistan’s sugar sector, urging the government to consider reforms that ensure a balanced and competitive marketplace.
