By Patience Lunda:
Illovo Sugar Malawi Plc has adjusted upwards prices of sugar by 17.9 percent.
According to the new prices, one kilogramme (kg) packet of brown sugar will now be sold at K2, 300 from K1, 950 while a kg of refined sugar will be sold at K2, 600.
The rise in the sugar price comes amid scarcity of the commodity on the local market.
Illovo has been attributing the supply shortages to challenges they encountered during Cyclone Freddy and foreign exchange shortages.
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Due to the scarcity, sugar prices have been fetching between K3, 500 and K5, 000 on the local market.
Illovo Managing Director Lekani Katandula yesterday confirmed the increase in price for the commodity, attributing it to an increase in production costs.
Katandula said the company has resumed production at its Nchalo factory and will be resuming production in Dwangwa within this week.
“We expect our sugar to be readily available throughout the country within the next two weeks,” he said.
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Minister of Trade and Industry, Sosten Gwengwe said the Competition and Fair Trading Commission (CFTC) is reviewing the sugar price increase.
CFTC spokesperson Innocent Helema said the commission will make an inquiry on the price adjustment considering that the company effected a 33 percent on its products after the 44 percent devaluation of the Kwacha.
“This may culminate into a fully-fledged investigation against the company depending on the explanation that we get,” he said.
Emmie Mphande, a consumer, described the price hike as unfortunate, asking the government to intervene.
“The commodity is not found on the market and then, they have decided to raise the price again and we are asking the government to intervene by engaging Illovo on the matter, “she said.
In March, the Ministry of Trade gave 20 traders licenses to import sugar from Zambia, Mozambique, Zimbabwe, Brazil and South Africa to stabilise sugar supply and prices in Malawi.
However, the move did not yield the intended results as prices kept rising.
Meanwhile, Salima Sugar Company Limited has opened its 2024 sugar production season to provide Malawians with sugar through their depots that will be opened across the country.
