Price of sugar up by 22% from K900/kg to K1,100

* Last month, there was scarcity of sugar which led traders to increase prices of the commodity

* Against the then recommended price of K900/kg to as high as K1,500/kg for brown sugar

* Even after sugar was flooded on the market, most traders still maintained high prices

* Some selling at K1,000 and following the increase, they are bound to peg it higher than K1,100

By Duncan Mlanjira

With effect from Monday, May 30, Illovo Sugar Malawi Plc has adjusted upwards prices of its products with brown sugar rising by K200, from K900/kg to K1,100 which represents 22%.

This follows many economic factors which include the recent official devaluation of the kwacha against foreign currency.

Last month, there was scarcity of sugar which led traders to increase prices of the commodity against the then recommended price of K900/kg to as high as K1,500.

Illovo Sugar hastened its production after its survey indicated that some unscrupulous traders were deliberately hoarding the commodity to create its scarcity in order to increase prices.

The company’s production goes on the break during the rainy season by making sure that it maintains enough stocks of sugar for domestic consumption to last up to May when the year’s production resumes.

The survey, according to Illovo Sugar Malawi Managing Director, Lekani Katandula — during a visit by Minister of Trade & Industry, Mark Katsonga-Phiri at Nchalo Estate — also indicated that illegal exportation of the product to neighbouring countries such as Mozambique, Zambia and Tanzania where Malawi’s Illovo sugar is cheaper.

Katandula had also assured the Minister and the general public that they never sanctioned any price increase, saying the unscrupulous traders were doing so at their own liberty while big supermarkets were selling at recommended prices — with some even less at K850.

But even after sugar was flooded on the market, most traders still maintained high prices — some selling at K1,000 and following the increase, they are bound to peg it higher than K1,100 as the recommended price.