By Benadetta Chiwanda Mia:
Illovo Sugar (Malawi) plc has increased sugar prices across all pack sizes, effective October 1, 2024.
A one-kilogramme (kg) packet of brown sugar will now retail at K2,600, up from K2,300.
A statement from Illovo attributes the price hike to inflationary costs across the supply chain.
According to the statement, the price of a 1kg packet of refined sugar has also risen to K2,950, while a bale of brown sugar is now selling for K48,758.
“These costs include, but are not limited to, rising expenses for essential raw materials and services required for sugar production,” the statement reads.
The sugar manufacturer also cited increases in transportation expenses for sugar distribution as one of the factors contributing to the price adjustment.
“Despite our diligent efforts to constrain costs internally, we have now reached a point where adjustments to our pricing structure are necessary to sustain our commitment to delivering quality sugar to the market,” the statement adds.
In an interview, Competition and Fair Trading Commission spokesperson, Innocent Helema, said the commission will engage with Illovo as part of its investigation process to establish the reasons behind the increase.
“We conduct market inspections and, of course, market surveillance exercises to determine whether companies or traders are engaging in competitive and, indeed, unfair trading practices.
“One of these exercises is what we call a price monitoring exercise, which establishes trends in prices,” Helema said.
In April this year, Illovo also raised sugar prices, with a packet of brown sugar adjusted upward to K2,300 from K2,000.
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