Government through the Ministry of Trade and Industry says it has sealed some sugar selling outlets in Lilongwe for charging exorbitant prices.
Through a statement signed by the Secretary for Trade and Industry, Christina Zakeyo, the ministry has indicated that it will continue closing the sugar outlets across the country if found to be overcharging sugar.
“The development follows a joint inspection conducted by the Ministry and the Competition and Fair Trading Commission (CFTC) following reports of general sugar scarcity on the market.
“Following the scarcity on the market, some traders are selling sugar at an exorbitantly higher than recommended prices by the manufacturers,” reads part of statement.
The Ministry has further indicated that the joint exercise confirmed that some wholesalers are selling a bale of Illovo Sugar at K69.000.00 which is way far much higher than the manufacturer’s recommended price of K37, 500.00.
“The sealed shops are Romana Trading and Chou Chou shops in Area 2 (Bwalo la Njovu) and Shalom Shop in Area 25 (Nsungwi) because they were selling their sugar at exorbitant prices. In addition, Simama General Dealers in Area 25 (Nsungwi) has also been closed for hoarding sugar,” indicated the Ministry.
The Ministry has since reminded Malawians that the recommended wholesale price for sugar is K37,500.00 per 20kg bale and the retail price per 1kg packet is K2,250.00.
Government has also warned that if anyone is found charging unfair and excessive prices way above the recommended prices are breaching the Competition and Fair Trading Act and the Business Licensing Act, 2012.
The statement has, however, asked Illovo Sugar Company to provide recommended prices to their distributors and has said the consumers have liberty to demand manufacturers recommended prices to avoid being overcharged.
