With sugar prices across the country sprialling into the stratosphere without any apparent reason, the CCP says it is on its toes to fulfil its statutory role.
By Muhammad Ali
ISLAMABAD: The Competition Commission of Pakistan (CCP) said Thursday it is monitoring the ongoing sugar crisis in the country, ready to take “appropriate enforcement and policy actions” if any anti-competitive activities are found.
The CCP carried out dawn raids on Pakistan Sugar Mills Association (PSMA) in 2021 and imposed substantial penalties of Rs. 44 billion on PSMA and its member sugar mills for cartelization.
The CCP decision, However, faced legal challenges in the High Courts of Sindh and Punjab, and in the Competition Appellate Tribunal (CAT). Pending proceedings of those cases,
and recovery of penalties remain stayed.
The CAT, on its part, is dysfunctional since July 14, 2023 due to expiry of its constitutional term of its chairman. The cases of sugar mills and similar other cases cannot move forward until the Tribunal becomes functional again.
Observers say the CAT has been dysfunctional since 2010, for 7.5 years of haitus leading to a huge backlog of cases. The sooner the government appoints its Chairman, the quicker the CAT can decide on the appeals.
The CCP says it has taken proactive measures against cartelisation in the sugar sector, demonstrating its commitment to ensuring fair competition. It claims it is fully cognisant and vigilant in safeguarding consumers and promoting fair competition.
Whilst CCP acknowledges the due legal processes associated with a judicial review, it says expediting the resolution of cartel cases is crucial for delivering effective relief to consumers. Long delays in resolving cartel cases inevitably has a negative impact on both consumers and the overall economy.
It is important to realise that cartelisation, market abuse, and abuse of dominance prevents new entrants in the industry and discourages foreign investment. The lack of competition results in higher prices for consumers.
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