Illovo Sugar Malawi has announced an increase in price of Brown Sugar from K1200 to K1500 per Kilogramme.
Price for White Sugar has also been increased to K1660 per Kg. The increase is effective today.
The company has announced the hike in a statement today, saying the decision has been made to curb illegal export of the commodity.
According to Illovo, the prevailing trends in exchange rates between Malawi Kwacha and Zambian Kwacha as well as Tanzanian Shillings and Mozambican Metical has made products from Malawi comparatively cheaper thus creating room for illegal exportation of sugar to the three neighbouring countries.
Illovo added that the illegal exports could mean a shortage of sugar and other products that are also being smuggled.
“To mitigate this risk and ensure that we do not run out of products that are essential for our daily needs in the country, we have taken this tough decision to increase our prices in an effort to ensure that Malawians can have reliable and sustainable access to sugar,” reads part of the statement.
The company added that the increase will help the country avoid much higher prices that would prevail in a situation where there is a shortage of sugar and companies are imprting the commodity.
In May, Illovo also hiked price of Brown sugar from K900 to K1100 per Kilogram citing the devaluation of the Malawi Kwacha by the Lazarus Chakwera administration.
Despite the official price being K1100, retailers were selling 1Kg packet of sugar at K1200.
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