Sugar prices slashed by 5 percent
Illovo Sugar (Malawi) Limited has announced a five percent reduction in sugar prices effective today [Tuesday].
In a press statement, Illovo says the ex-mill prices of sugar have been reduced by an average five percent on account of the recent appreciation of the kwacha.
The statement indicates that a brown pre-pack bale of 20 one kg packets now sells at K7 045.92—approximately K352.30 (about 88 US cents) per packet. And a bale of 20 one kg packets of white sugar will sell at K7 269.6—about K363.48 (about 90 US cents) per packet.
However, in March this year Illovo hiked the price of sugar by 15 percent in what it described as a normal annual price increase implemented at the beginning of each sugar milling season. The sugar producer in November also raised the price of sugar by 12 percent due to an increase in fuel prices.
But Illovo in the press statement notes that the recent appreciation of the kwacha against major trading currencies has necessitated the price reduction.
The kwacha has since end-April been appreciating against major trading currencies such as the dollar. The local unit has appreciated by approximately 20 percent from around K420 to about K340 to the dollar.
