Illovo Sugar Malawi is facing scrutiny as consumer rights advocate- CAMA is demanding a 25 percent reduction in sugar prices.
The Consumers Association of Malawi lodged a complaint with the Competition and Fair Trading Commission against Illovo Sugar Malawi for a 25% price increase in sugar, implemented in October 2022.
The sugar producing company had claimed the hike was to curb sugar smuggling to neighboring countries.
However, John Kapito, Executive Director for CAMA argued the price unfairly burdened consumers.
With this, Kapito urged the government to open the sugar market to mitigate Illovo’s market dominance, which they claim harms consumers.
Meanwhile, Kapito has demanded an immediate 25% reduction in sugar prices and a refund of the excess charges collected since October 2021.
In addition, the consumer rights lobby group has commended efforts by CFTC aimed at protecting the rights of consumers.
Illovo Sugar Malawi last year announced a hike in Brown Sugar prices from K1200 to K1500 per Kilogramme. Meanwhile, white sugar is being sold at K1660 per Kilogram.