The Competition and Fair Trading Commission (CFTC) says it will probe the recent price hike by Illovo Sugar Malawi and Salima Sugar for their products.
The sugar producers effected hike almost simultaneously, adjusting a 1kg packet of brown sugar from K1950 to K2300 and from K1900 to K2200 respectively.
Speaking to MBC, CFTC spokesperson, Innocent Helema, says the Commission is questioning the move as it comes barely five months after Illovo had effected a 33% hike.
“We will write Illovo Sugar Malawi Plc. to inquire on the reasons behind the current increase. This may lead to a fully fledged investigation against the company, depending on the explanation that will get from them,” Helema said.
Salima Sugar also announced its price hike today, hours after their competitor.
“Salima Sugar will be engaged to appraise the CFTC as regards the basis for such an increment, especially considering that just a few days ago, they had launched the new season sales at another recommended price,” wondered Helema.
The development comes amid an ongoing shortage of the commodity on the market, despite earlier pronouncements by the company that availability would improve by this month.
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