The Competition Commission of Pakistan (CCP) has imposed the highest-ever penalty of Rs44 billion on the sugar industry for cartelisation, price fixing and market manipulation. As per decision, the sugar mills influenced the bidding processes at the Utility Stores Corporation when it purchased sugar from mills.
The decision was taken against the Pakistan Sugar Mills Association (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. However, PSMA is already up in arms because, it turns out, that two members of the CCP did not agree with the Chairman’s decision.
Inflation continues to challenge the government’s resolve to control the prices of essential kitchen items, especially wheat flour and sugar, which has forced most lower- to middle-income households to slash their other expenditure in order to put food on the table. Sugar is not a staple food. But it is a source of daily caloric intake for millions.
Due to the lack of competition, most of the mill owners impose their arbitrary decisions through cartelisation, the consequences of which are borne by the people. Influential capitalists in Pakistan set their own prices and do not allow new institutions to flourish so that their monopoly is maintained.
As far as the initiative of the Competition Commission is concerned, the institution has done its best and has fulfilled its responsibility well because such cartels in Pakistan will not come under control until they are punished.
Now the government, especially Prime Minister Imran Khan himself, should take up the matter so that the mafia, which is disturbing the people by creating artificial inflation, can learn a lesson and make the Competition Commission more active and empowered.
With the masses still waiting for the promised change to happen, the government must take effective steps to break up the cartels and not allow itself to be blackmailed.
