Inquiry launched against sugar industry

Aftab Ahmed

Islamabad: Teams of the Competition Commission of Pakistan (CCP) on Monday raided the offices of the Pakistan Sugar Mills Association (PSMA) and seized records to investigate the possible anti-competitive activities in the sugar industry.

As part of an ongoing inquiry into the possible anti-competitive activities in the sugar industry, the Competition Commission of Pakistan (CCP) carried out a search and inspection of the Pakistan Sugar Mills Association (PSMA) are Lahore and Islamabad offices on Monday.

The CCP authorized its officers to the ‘Enter and Search’ PSMA premises under Section 34 of the Competition Act, 2010 following indications of PSMA’s anti-competitive activities including, but not limited to, the collective stoppage of crushing in season 2019-20, collective rise in prices of sugar, and collective refusal to supply sugar to Utility Store Corporation (USC) as recently reported.

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Two different teams, authorized by the Commission, simultaneously searched PSMA’s Islamabad and Lahore premises and impounded the relevant record.

The CCP warned industry associations from indulging in activities through its various enforcement orders, which may violate the Competition Act. The rule of thumb is that the associations cannot discuss, deliberate, or share sensitive commercial information that may allow its members, who are competitors, to coordinate business policy or discussion on economic aspects.

The CCP, as part of its statutory mandate under the Competition Act, strives to eradicate anti-competitive practices in all sectors of the economy.