Consumers want action on sugar crisis

Consumers Association of Malawi (Cama) has asked sugar manufacturer Illovo Sugar (Malawi) plc and Ministry of Trade and Industry to act on the persistent shortages and rising sugar prices.

In a statement made available to Weekend Business, Cama executive director John Kapito said it is surprising that Malawi continues to struggle with sugar shortages and high prices, a product that does not require rocket science to produce.

He said: “Time has come for government to assist local Malawians with resources that would help to start producing sugar in various parts of the country, especially the small holder sugar growers.

“Government should also review its trade policy that gives Illovo Sugar Malawi plc the complete dominance of the Malawi sugar market by opening up the market in the short-term and allow traders that have capacity to bring in sugar that would end this market abuse.”

Kapito has since demanded immediate release of sugar into the market and an explanation from both Illovo Sugar Malawi and Ministry of Trade and Industry the reasons behind the continued persistent shortages.

Erratic availability of sugar in some parts of the country has pushed up sugar prices to K2 500 per kilogramme (kg) in some shops.

This is despite Illovo Sugar Malawi plc maintaining that the company has not hiked sugar prices, with a one kg packet selling at a retail price of K2 000.

In an interview on Monday, Ministry of Trade and Industry spokesperson Mayeso Msokera said government was yet to establish the main cause of sugar scarcity, engaging the producers of sugar in the country to find a quick solution and that it was treating this issue as an emergency.

He indicated that government was meeting with sugar producers to establish the cause of the situation and the way forward.

On his part, Illovo Sugar (Malawi) plc managing director Lekani Katandula refused to comment on the sugar scarcity, referring Weekend Nation to Ministry of Trade and Industry.

However, in a statement following snap inspections in selected markets, the Competition and Fair Trading Commission (CFTC) said it had established that suppliers are hoarding sugar at distribution level and charging exorbitant prices of the product beyond the recommended retail price.

Said CFTC executive director Lloyds Vincent Nkhoma in the statement: “Suppliers, consumers and the general public are, hereby, reminded that the business malpractices involving hoarding, excessive pricing, tying, misleading consumers as to price of a product with the view to take advantage of a situation, are violations of the Competition and Fair Trading Act [CFTA].

“All suppliers found engaging in such malpractices will be dealt with in accordance with the CFTA.”