By Brenda Kayo:
The Daily Times has established that the price of sugar has risen in some parts of the country.
Some retail shops are selling sugar at K4,000 for a one-kilogramme (kg) packet.
In Lilongwe, the quantity is sold at K4,000, while the same packet in Kasungu, Dowa and Salima is being sold at between K3,600 and K3,800.
- Advertisement -
This is up from the normal price of K2,600 for a kg of brown sugar and K2,950 for a refined packet of sugar.
- Advertisement -
Illovo Sugar Company spokesperson Olive Kawelama said it is their mandate only to recommend prices for its sugar products, not enforce them.
However, she acknowledged that some vendors have been escalating prices and said that Illovo has reached out to the relevant authorities to address the issue.
“Regarding the pricing, we can only recommend prices but cannot enforce them. We are aware of the price escalation by some vendors and we have reached out to the relevant authorities and will continue to work with them to monitor the issue,” Kawelama said.
She has assured that Illovo has adequate stock during the off-peak period.
- Advertisement -
Meanwhile, Minister of Trade Sosten Gwengwe has attributed the high production costs of goods in Malawi to the escalating value of the dollar on the black market.
He said the ministry is working with the Reserve Bank of Malawi to develop policies aimed at reducing the demand for dollars on the black market.
Gwengwe believes that this will make it easier to enforce price reductions, which will ultimately benefit consumers.
“We hope that if the Reserve Bank supports local producers to receive a stable dollar exchange rate, we will be able to enforce price reductions. Consumers have been punished because of the difficulty in obtaining dollars on the black market,” Gwengwe said.
Consumers Association of Malawi Executive Director John Kapito said it is disturbing that despite the commodity regulations, the country has been experiencing sugar shortages, particularly during Illovo’s off-peak periods, which are leading to price escalations.
He urged the Ministry of Trade and the Competition and Fair Trading Commission to take decisive action to address the issue.
“They must investigate the allegations of hoarding and price manipulation and prosecute those found guilty of selling sugar at inflated prices,” Kapito said.
Last year, during the same off-peak period, Malawi experienced a shortage of sugar in most parts of the country, which also led to the escalation of prices.
