CCI gives clean chit to sugar companies for cartelisation, price manipulation

MUMBAI: India's competition regulator Competition Commission of India has absolved sugar manufacturing associations and their members of cartelisation and price manipulation charges.

Earlier, the competition regulator had sent a notice to sugar mills associations and their members charging them of cartelisation and price manipulation. The suo motu action charged Indian Sugar Mills Association (Isma), National Sugar Mills Co-operative Federation, and some private sugar firms of cartel violation.

However, the sugar associations and companies argued that sugar prices are market driven and monitored by government regulations. Also, with nearly 620 small-to-big production units in the country, the industry is fragmented and it is difficult for a few people to dictate prices, the associations said.

"Traditionally prices of sugar are based on market forces and government regulations," said Abinash Verma, secretary general of Isma.

"The CCI has given us a clean chit after considering all aspects of the business." CCI had earlier alleged that industry members had decided to increase the ex-factory price of sugar by 4-6% in order to prevent prices from falling below production cost.

The private companies that had been charged by CCI included Shree Renuka Sugars, DCM Shriram Consolidated, Bajaj Hindustan and Mawana Sugar, among others.

source: ET