A Record-breaking 44 billion Fine has been Levied against the Sugar Industry

15th August 2021.

The sugar industry was hit with a record-breaking penalty of around 44 billion for predatory pricing and confiscatory taxation. This was done on Friday by Pakistan’s competition committee. The penalty is based on the computation of the turnover of 55 sugar mills for the fiscal year 2019, with a maximum fine of Rs300 million imposed on the Pakistan Sugar Mills Association (PSMA). Each of the four breaches recorded by the association resulted in Rs75 million punishment, for a total of Rs300 million.

CCP issued a stern order to the sugar mills and PSMA to pay the penalties within 60 days. In the meantime, a PSMA public statement stated that the CCP selection was not the last request because two individuals did not agree with the director’s viewpoint and voted for the sugar plants and the PSMA.

According to press reports, the CCP chairperson is not permitted to vote a second time in proceedings under the competition act. The sugar mills controlled domestic exports by agreeing on the quantum of exports from 2012 to 2020. The CCP order revealed this information.


According to the CCP, the public authority is limited in its ability to cross-check this data due to time constraints. The order expresses that there was nothing to offer quantitative assistance in the public authority’s value controls components for basic products due to a lack of a free, convenient, and precise data gathering system.

A fixed sanction of Rs50 million has been imposed on each of the 22 sugar mills for conspiring to participate in the Utility Stores Corporation (USC) tender in 2010. Before this, the CCP endorsed a temporary order against the sugar area in 2010, but the procedures were halted because the matter was still pending in the Sindh High Court.

Please contact the Legal Research Institute of Pakistan for further assistance

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