Sugar crisis; CCP conducts search, inspection of  PSMA offices

ISLAMABAD, As part of an ongoing inquiry into the possible anti-competitive activities in the sugar industry, the Competition Commission of Pakistan (CCP) on September 14, 2020 conducted search and inspection of the Pakistan Sugar Mills Association (PSMA)’s Lahore and Islamabad offices.

An official handout issued here on September 14, 2020 said 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.

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

Through its various enforcement orders, the CCP warned industry associations from indulging in activities, which may violate the Competition Act. The rule of thumb is that the associations are not allowed to discuss, deliberate or share sensitive commercial information that may allow its members, who are competitors, to co-ordinate 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 sector of economy.

 

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