Sugar Millers Skip CCP Hearing

Staff Report

Islamabad: As sugar prices continue to rise, the sugar millers have skipped the hearing scheduled by the Competition Commission of Pakistan (CCP).

After the government allowed the export of sugar, prices had surged to Rs 200 per kg, causing controversy.

The millers had committed not to increase sugar prices after the government allowed exports. However, these millers violated that commitment and raised prices, leading to action by the CCP.

The CCP had scheduled a hearing to address the cartelization allegations against the sugar millers.Govt Seizes Sugar Stocks, Puts Mill Owners on ECL

The Competition Commission of Pakistan (CCP) has rescheduled the rehearing of the cartelization case against the Pakistan Sugar Mills Association (PSMA) and its member mills, following requests from their legal counsels.

The hearings, initially fixed for August 4–7, 2025, will now take place from September 22–25, 2025. The adjournment was sought on grounds that over fifty mills have filed appeals against the CAT order in the Supreme Court of Pakistan, while others cited unavailability of legal representatives due to the Supreme Court’s summer recess. 

While the CCP had scheduled day-to-day hearings in line with the directions of the Competition Appellate Tribunal (CAT), it has allowed a one-time postponement in the interest of fairness and to ensure due opportunity for all parties to present their case. 

The Commission will not entertain further delays, and in case of non-appearance or repeated adjournment requests, ex-parte proceedings may be initiated.

The proceedings pertain to show cause notices issued in November 2020 to PSMA and its member mills for alleged cartelization and anti-competitive conduct. Hearing notices were most recently issued on July 9, 2025, in compliance with CAT’s May 21, 2025 order, which directed the Commission to rehear the matter before a Member or Chairperson not part of the original bench.

It may be recalled that in 2021, the CCP had imposed a penalty of Rs. 44 billion on PSMA and its member mills for cartelization. The order was later set aside by the Tribunal, which held that the casting vote exercised by the then Chairperson in a 2-2 deadlock was not permissible under the Competition Act, 2010 in quasi-judicial proceedings.