Bitter end for sugar price manipulation
The Ministry of Trade and Industry has sealed four shops in Lilongwe for overpricing and hoarding sugar.
The shops are Romana Trading and Chou Chou at Bwalo La Njovu as well as Shalom and Simama General Dealers in Area 25.
In a press release issued Friday, the ministry said the development follows a joint inspection it conducted with Competition and Fair Trading Commission (CFTC) following reports of sugar scarcity on the market.
“The joint exercise confirmed that some wholesalers are selling a 20 packet bale of Illovo Sugar at K69 000 which is much higher than the manufacturer’s recommended price of K37 500,” reads the statement signed by Secretary for Trade and Industry Christina Zakeyo.
She says traders selling sugar above the recommended wholesale price and retail price of K2 250 per 1kg packet are breaking the law.
“Anyone charging unfair and excessive prices way above these recommended prices are breaching the Competition and Fair Trading Act and the Business Licensing Act, 2012.
“The ministry reiterates its warning to all traders against this malpractice as anyone found overcharging sugar will have their shops closed and face the long arm of the law or have their licences revoked,” she says.
Zakeyo urges Illovo Sugar Limited to provide recommended prices to their distributors and consumers to demand manufacturers recommended prices.
“The general public is further assured not to panic as the ministry has issued adequate licences for importation of sugar to increase sugar availability on the domestic market,” reads the statement.
In his reaction, Consumers Association of Malawi executive director John Kapito accused the ministry of being slow to react.
“They told us a long time ago they knew people were hoarding sugar and they did nothing. Now that we are pushing, that’s when they are reacting.
“The ministry and CFTC shouldn’t be reactive, but proactive. They can’t keep closing shops. What we want is for sugar to return to the market,” he said.
Meanwhile, the Parliamentary Committee on Industry, Trade and Tourism chairperson Paul Nkhoma says the committee will launch its own investigation into sugar hoarding.
“We have planned to visit several warehouses countrywide. Our aim is to collect evidence for the government.
“I am pleased with the government’s action. There are more to be closed,” he said.
