CFTC launches investigations into high fertilizer prices

The Competition and Fair Trading Commission (CFTC) is probing alleged high fertilizer pricing on the local market.

This follows the findings of a survey by the COMESA Competition Commission that indicated that local traders sell fertilizers at exorbitant prices.

The research was done in collaboration with the Centre for Competition Regulation and Economic Development (CCRED) in six countries in including Malawi.

The report says the local fertilizer market has few players and manifests lack of competition with largely two companies controlling the market.

Suppliers in Malawi are selling fertilizers with a mark-up as high as 133% over the aggregate landed costs of the product.

According to CFTC’s Public relations officer, Innocent Helema the issue is a major concern and they are currently working to address it.

“The issue of fertilizer pricing has been a major concern to CFTC owing to the findings from the price monitoring exercises we conduct from time to time.”

“We have of late been probing the justifications for such pricing in collaboration with other competition enforcement agencies in the region. Once the investigations have been concluded, the nation will be informed on our enforcement actions,” Helema explained.

Meanwhile a bag of fertilizer is being sold at a price between K90 thousand to K110 thousand.