Illovo insensitively hikes sugar price to sustain operation

 Illovo Sugar Malawi has sparked outrage with its decision to hike sugar prices by 15% to MK3,000 per kilogram, despite the country's economic crisis. The company's Acting CEO, Jimmy Mpunga, justified the increase, citing high inflation and the depreciation of the Malawi Kwacha.


However, the Consumers Association of Malawi (CAMA) has slammed the decision, accusing Illovo of insensitivity and the Ministry of Trade of approving the price hike without considering the impact on consumers. CAMA Executive Director, John Kapito, questioned the ministry's wisdom in allowing traders to sell sugar at higher prices when they had bought it at lower prices.


Kapito also pointed out that Illovo is not currently producing sugar, and the price hike only benefits traders who are hoarding sugar. He appealed to the Competition an


d Fair Trade Commission (CFTC) to inform consumers which sugar Illovo has increased in price, considering they are out of season.


The price hike has come under fire, especially after Trade Minister Vitumbiko Mumba recently closed several retail shops for hoarding sugar. The move has left many wondering if the government is doing enough to protect consumers from price exploitation.

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