CFTC wants DPP to prosecute Illovo over price hike
CFTC officials during a media briefing on the matter
The Competition and Fair-Trading Commission (CFTC) has recommended that the Director of Public Prosecutions (DPP) should prosecute Illovo Sugar Malawi Plc. for hiking sugar prices in September last year.
Speaking at a media briefing in Lilongwe this morning, CFTC executive director Lloyd Nkhoma said Illovo had indicated that the devaluation of the local currency led to a reduction in the cost of exports hence some neighbouring countries took advantage of the situation and smuggled the product from Malawi.
However, Nkhoma described the reason for the price increase as unjustifiable, irrational and that hike adversely affected consumers adding that the conduct contravened Section 43(1)(g) of the Competition and Fair Trading Act (CFTA).
“The company resolved to increase the price of sugar to make the product expensive on the local market, and thus curb the smuggling of sugar into the neighbouring countries which is a violation of consumer rights,” he argued.
The CFTC boss further stressed the need for the ministry of trade to ensure that the supply of essential commodities like sugar are not shielded from import competition.
“Domestic beneficiaries under the Control of Goods Act are not supposed to abuse their dominant positions by engaging in unfair trading practices.” He added.
Following the development the Commission has since recommended that as a policy holder, the Ministry of Trade should compel Illovo sugar to reduce sugar prices.
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