ISLAMABAD: The Competition Commission of Pakistan (CCP), on Friday 12th of August has directed the Pakistan Sugar Mills Association (PSMA) to pay a penalty of Rs. 44B within a month for the violation of the Competition Act 2010.
It was a split decision as two members of the four-member CCP bench were convinced that the sugar mills had acted in violation of the Competition Act. The other two were not sure whether or not the PSMA and its members had acted as a cartel to manipulate prices and decided to export the commodity. It is definite that the bereaved party will go to High Court and take advantage of the fact that CCP Chairperson Rahat Kaunain twice cast her vote to make it a majority judgment. Nevertheless, the CCP calling it a historic judgment stated on Friday 13th of August, 2021: “…CCP passed an order against PSMA and 81 member mills for violations of Section 4 of the Competition Act, 2010.”
CCP has imposed the fine to 81 sugar mills for embezzlement, corruption and exploitation of farmers: the highest fine of Rs 300 million had been imposed on PSMA for its persistent anti-competitive practice. SAPM on Political Communication Dr Shahbaz Gill, while commenting on the imposition of penalty, also pointed out that for the last many years a subsidy of Rs 30 billion was being given to sugar mills. SAPM told that from 30th day of December, 2019 till 11th day of January, 2020 PSMA stopped crushing of 15 sugar mills illegally in the Punjab zone making farmers suffer enormously.
Since farmers were forced to stand in queues outside the mills for several days, due to scorching sun the weight of their product reduced. He further informed that in 2019 PSMA sold 20,000 metric ton of sugar to utility stores & generated loads of rupees. According to the SAPM sugar mills owners used to blackmail the govt to force it to pay them subsidies. Gill pointed out since those involved in sugar business were deeply rooted in the country’s in politics, businesses, bureaucracy and other powerful sectors, they wriggled out of all accountability processes.
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