ISLAMABAD (Web Desk) – The Competition Commission has uncovered a cartel involving sugar mills.
The Competition Commission of Pakistan (CCP) has issued show-cause notices to 10 sugar mills in Punjab for forming a cartel, stating that the mills colluded to delay the crushing of sugarcane.
According to the statement, the sugar mills fixed the sugarcane price at Rs 400 per maund by forming a cartel, while farmers were ignored in the price-setting process.
The CCP said the sugar mills held a secret meeting on November 10 at one mill, where a joint decision was taken to start crushing from November 28.
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The statement added that representatives of several sugar mills also participated in the meeting online. Fixing prices through cartelisation is a violation of the Competition Act.
The Competition Commission has sought written replies from the 10 sugar mills within 14 days.
It warned that the delay in crushing could lead to an artificial shortage of sugar and a rise in prices. The sugar mill where the secret meeting was held has also been issued a show-cause notice.