The Lilongwe Registry of the High Court Commercial Division has granted a stay (injunction) to some farm input distribution companies on interim orders issued by the Competition and Fair-Trading Commission (CFTC).
The court has since merged the legal challenges by five of the nine companies and the consolidated case will be heard by Justice Gloria Namonde.
The development means the companies are now free to adjust their prices in response to market conditions until the matter is heard and determined by the court.
Through the interim orders issued on January 27 2025, CFTC prevented the companies from increasing fertiliser prices or hoarding supplies while it investigated allegations of unwarranted pricing and unreasonable conduct.
The farm input companies are Export Trading Group (ETG), Farmers World, Malawi Fertiliser Company, Dalitso General Supplies, Paramount Holdings Limited, Optichem 2000 Limited, Rab Processors Limited, Brussels Fertilisers Limited and Agora Limited.
The commission also issued interim orders to two poultry feed manufacturing companies—CP Feeds and Proto Feeds—requiring them to cease and desist from engaging in “excessive pricing and unconscionable conduct.”
Five firms challenged CFTC interim orders, arguing that the intervention was unlawful and exceeded its legal authority under the Competition and Fair Trading Act.
The case will now proceed to hearing where the five companies will challenge CFTC’s legal basis for the intervention.
When contacted, CFTC spokesperson Innocent Helema said they are aware of the development, and they are ready to defend their position when hearing starts.
“It must, however, be noted that the commission is proceeding with its investigations against the companies on the alleged misconducts. The applications in court only relates to the interim orders issued, and not the investigations,” said Helema.
But one of the lawyers representing the five companies, Wanangwa Hara, in an interview welcomed the court’s decision to put brakes on CFTC’s interim orders.
“Our clients now have a breathing room to adjust prices in line with market realities while we seek to set aside the interim orders before the High Court Commercial Court in Lilongwe. We look forward to making our case and ensuring that fairness prevails,” he said.
According to Hara, CFTC did not hear the companies’ side before issuing the order.
He argued that Section 43 of the Constitution requires that administrative actions be lawful, procedurally fair and justified.
“The CFTC does not have the power to impose price controls in a free market. The prices restrictions were unjustified and did not account for market dynamics including inflation, forex challenge and rising import costs,” said Hara.
According to information posted on CFTC website, Section 23 of the Competition and Fair Trading Act gives powers to the commission to issue an interim order requesting an enterprise to stop engaging in conduct where it believes that, on reasonable grounds, before it reaches a final decision on a matter an enterprise has engaged, is engaging, or is proposing to engage, in conduct that constitutes or may constitute an infringement of the Act.
CFTC intervention followed a public outcry over recent fertiliser price increases which hit K170 000 for a 50kg bag of Super D Compound.
