Sugar Prices on the Rise
Concerns over rising sugar prices in Pakistan have intensified after reports surfaced of a possible new cartel within the sugar industry. According to the Competition Commission of Pakistan (CCP), the organization has issued show-cause notices to 10 sugar mill owners, requesting responses within 14 days.
The commission alleges that mill owners coordinated not only to delay the sugarcane crushing season but also to set sugarcane prices at 400 Pakistani Rupees per maund (approximately 40 kilograms). Such actions, if confirmed, could disrupt sugar supply chains and trigger further price increases for consumers.
Currently, sugar prices across the country range between 200 and 229 Pakistani Rupees per kilogram, a significant rise from earlier in the year. Industry insiders warn that delays in the crushing season could exacerbate shortages, creating upward pressure on prices.
Alleged Coordination and Secret Meetings
The CCP confirmed a secret meeting held at Fatima Sugar Mills on November 10, 2025, where prominent mill owners reportedly agreed to commence crushing from November 28, despite an official mandate from the Punjab Sugarcane Commissioner requiring the process to begin on November 15.
Documents obtained by the commission indicate that industrial groups from Bhakkar, Dera Ismail Khan, Sargodha, and southern Punjab maintained constant contact during this period. Analysts warn that such coordination could result in significant losses for both consumers and sugarcane farmers, potentially running into billions of Pakistani Rupees.
The CCP has described the alleged cartel as a deliberate effort to manipulate the market, potentially causing economic harm to the general public and agricultural producers alike.
Also Read: Sugar Price in Pakistan: Government to Import 500,000 Tons sugar to Stabilize Market
Legal and Regulatory Implications
The commission has stated that the alleged cartel violates Section 4 of the Competition Act 2010, which prohibits agreements that restrict competition or manipulate prices. CCP Chairman Dr. Kabir Sidhu emphasized that trade organizations must not serve as platforms for illegal cartel activity.
This is not the first time the Pakistani sugar industry has faced allegations of price manipulation. Previously, sugar mills were fined 44 billion Pakistani Rupees for artificially inflating sugar prices. However, the mill owners obtained a court injunction, and the Supreme Court subsequently referred the matter to an appellate tribunal for reconsideration.
Impact on Farmers and Consumers
The potential cartel could have far-reaching consequences. Sugarcane farmers may face reduced bargaining power if mill owners dictate prices collectively. Consumers could encounter price spikes, particularly in urban centers where sugar is a staple ingredient in both households and food production.
Industry observers note that delays in the crushing season can have a domino effect, as sugar mills typically begin operations immediately after harvesting to prevent spoilage. Any artificial delay can therefore disrupt the supply chain significantly, intensifying market volatility.
Outlook
The recent developments indicate that Pakistan’s sugar pricing crisis is far from over. Should the CCP confirm the existence of a cartel, sugar prices may rise further in the coming weeks. Authorities are closely monitoring the situation to protect both consumers and farmers from potential economic harm.
The CCP has reiterated its commitment to strict enforcement of competition laws, signaling that violations could result in significant fines and legal consequences for industrial groups found guilty of collusion.
