Exorbitant prices in some shops
* The sealed shops are Romana Trading and Chou Chou shops in Area 2 (Bwalo la Njobvu) and Shalom Shop in Area 25 (Nsungwi)
* Simama General Dealers in Area 25 (Nsungwi) has also been closed for hoarding sugar
* The Ministry will continue to seal such outlets across the country if found to be overcharging prices of sugar
By Duncan Mlanjira
The Ministry of Trade & Industry informs the public that the recommended retail price for Illovo sugar is K2,250 per 1kg packet and the wholesale is K37,500 per 20kg bale.
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Secretary of Trade & Industry, Christina Zakeyo emphasised on this when announcing that the Ministry “has closed some sugar selling outlets in Lilongwe and will continue to seal such outlets across the country if found to be overcharging sugar”.
The sealed shops are Romana Trading and Chou Chou shops in Area 2 (Bwalo la Njobvu) and Shalom Shop in Area 25 (Nsungwi) while Simama General Dealers in Area 25 (Nsungwi) has also been closed for hoarding sugar.
“The development follows a joint inspection conducted by the Ministry and the Competition & Fair Trading Commission (CFTC) following reports of general sugar scarcity on the market.
“Following the sugar scarcity on the market, some traders are selling sugar at exorbitantly higher than recommended prices by the manufacturers.”
She indicated that some wholesalers are selling a 20x1kg packet bale of Illovo Sugar at K69,000, “which is way far much higher than the manufacturer’s recommended price of K37,500.
Thus the Ministry stresses that the general should demand for the recommended price, emphasizing that anyone charging unfair and excessive prices way above these recommended prices are in breach of the Competition and Fair Trading Act and the Business Licensing Act, 2012.
The Ministry also ordered Illovo Sugar Malawi “to provide recommended prices to their distributors and the consumers have liberty to demand manufacturers recommended prices to avoid being overcharged”.
“The general public is further assured not to panic as the Ministry has issued adequate licences for importation of sugar to increase sugar availability on the domestic market.
“The Ministry reiterates its warning to all traders against this malpractice as anyone found overcharging sugar will have their shops closed and face the long arm of the law or have their licences revoked.”
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Consumers are also encouraged to report overcharging malpractices through the public relations officers — Patrick Botha (Ministry of Trade) and on 0999190147 and Innocent Helema (CFTC) on 0880725075 or on CFTC Toll free line 2489.
Meanwhile, Zodiak Online reported yesterday from Machinga that some traders in the district supplying the markets with sugar illegally imported from Zambia due to the shortage of the commodity that has hit Malawi for over two months now.
A Kg packet of the Zambian sugar called WhiteSpoon is being sold at K2,900 in Liwonde in the district and the report quotes programmmes officer at Center for Social Concern, Tobias Jere as asking the authorities to intervene on the matter, saying such products are posing a risk to human health as they are not certified.
Ministry of Trade’s spokesperson, Patrick Botha told Zodiak Online that traders interested in the importation of sugar to apply for an import license, as recommended by the Business Licensing Act.
The product from Zambia
Soon after the devaluation of the kwacha in November, the CFTC and the Ministry of Trade were mandated by President Lazarus Chakwera to intensify investigations of any perceived unjustified price increases of commodities and the exercise if ongoing.
When a preliminary report in December indicated that that indeed some traders are using the devaluation as a scapegoat to exploit consumers, CFTC alerted consumers to be vigilant on the market against possible unfair trading practices when suppliers of goods and services engage in different tactics to woo customers.
The consumers were encouraged to be on a watch out for misleading and deceptive conducts emanating from pricing, advertising, sale of fake or uncertified products, sale of expired products on promotion, among others.
Traders were also warned that they must be aware that engaging in such conducts is against both the Competition and Fair Trading Act (CFTA) and the Consumer Protection Act (CPA).
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