Follow Us on Google News
ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a fine of Rs44 billion on the Pakistan Sugar Mills Association (PSMA) and 55 sugar mills for widespread manipulation to control the production and supply of sugar.
The penalty issued to the PSMA is the highest penalty ever imposed by the CCP. According to a statement issued today (Friday), sugar mills owners have manipulated the production, stock, export and local supply of sugar. “They also influenced the bidding processes at the Utility Stores Corporation when it purchased sugar from mills,” it added.
“The decision was taken against the PSMA over a violation of the Competition Act 2010 for fixing the sugar price, which was proved during an investigation conducted by the CCP in December 2019,” read the statement. “Four sugar mills are directed to pay Rs70 million each, while 22 mills would pay Rs50 million each,” it added.
The notification further stated that two of the CCP members gave a dissenting opinion over the commission’s decision, whereas the chairman and another member voted for issuing a penalty to the PSMA. However, the CCP chairman voted again in favour of the decision over a tie in the votes.
Last year, a sugar crisis had occurred in the country, due to which the sugar prices had skyrocketed. The CCP investigated the matter and issued notices to several sugar mills.
Once the Sugar Inquiry Commission submitted its report, the CCP was asked to investigate the issues related to cartelisation and anti-competitive measures in the sugar industry.
Meanwhile, the PSMA outrightly rejected the inquiry commission’s report, which was made public and explained how the price of sugar was fixed, how exports of the commodity were faked on sales taxes.
The PSMA alleged that the commission “distorted the facts” in its report presented to Prime Minister Imran Khan and the federal government.
