ISLAMABAD: With sugar prices climbing to Rs175 per kilogram during Ramazan and projected to hit Rs200, the Competition Commission of Pakistan (CCP) warned on Tuesday that it is keeping a close eye on the unfolding crisis. The commission vowed to crack down with strict enforcement and policy measures if it uncovers any anti-competitive behavior.
The spike follows the government’s decision to permit sugar exports, a move that enriched millers but overlooked broader consequences. Now, facing shortages and escalating costs, authorities are mulling raw sugar imports to stabilize supply—potentially handing dealers a profit windfall while leaving consumers and the government in the lurch.
The CCP emphasized its ongoing efforts to dismantle cartels in the sugar industry and safeguard fair competition. In 2020, an inquiry exposed price-fixing and supply manipulation by sugar mills, orchestrated through the Pakistan Sugar Mills Association (PSMA). This led to raids on PSMA offices and, in August 2021, a hefty Rs44 billion fine—the largest in CCP history. Legal challenges in the Sindh and Lahore High Courts and the Competition Appellate Tribunal have since stalled penalty collection.
The commission’s fight against sugar cartelization dates back to 2009, when it first flagged PSMA’s role in price rigging and supply control. Show-cause notices followed in 2010, only to be halted by a Sindh High Court stay. Over the years, the CCP has pushed for reform through policy notes in 2009, 2012, and 2021, urging deregulation, unrestricted mill expansion, and market-driven pricing over fixed sugarcane support rates to boost competition and fairness.
In its latest note, the CCP reiterated calls to scrap support prices, advocating a system that rewards farmers equitably while promoting sector efficiency. Meanwhile, 127 sugar-related cases remain tied up in courts—24 in the Supreme Court, 25 in the Lahore High Court, six in the Sindh High Court, and 72 in the Competition Appellate Tribunal. To speed things up, the government recently appointed a new tribunal chairman and members.
As prices climb, the CCP’s scrutiny intensifies, signaling potential action to rein in what it suspects is miller-driven profiteering.
