CCP Summons Sugar Mills for Rehearing in Rs. 44 Billion Cartelization Case

The Competition Commission of Pakistan (CCP) has issued notices to the Pakistan Sugar Mills Association (PSMA) and its member sugar mills to appear for a hearing in the matter of show cause notices issued to PSMA and member mills in November 2020 for alleged cartelization and anti-competitive conduct.

The proceedings are scheduled for August 4th, 5th, 6th, and 7th, 2025.

The hearing notices have been issued in compliance with the 21 May 2025 order of the Competition Appellate Tribunal (CAT), which directed the matter to be reheard by the Chairperson or Member of the Commission who was not part of the earlier conflicting opinions.

The Tribunal further directed that the matter be decided preferably within 90 days. In 2021, the CCP had imposed a penalty of nearly Rs 44 billion on PSMA and its member mills for violating competition laws.

The order, however, was challenged in CAT, which questioned the legality of the casting vote exercised by the then Chairperson to break a 2-2 deadlock in the original four-member bench.

The Tribunal held that no casting vote could be exercised in quasi-judicial proceedings under the Competition Act, 2010, and set aside the resulting order.

Through the current notices, CCP has directed all concerned parties to nominate authorized representatives and appear with all relevant facts and material for the rehearing.