Barely three days after the Malawi Government devalued its currency by 25 percent to a US dollar, sugar manufacturing company, Illovo Sugar Malawi plc, has raised its prices by 25 percent effective May 30.
In a statement, lllovo Sugar Malawi said the rise in sugar prices was due to a general rise of cost of production that the company is experiencing.
The changes will see a 1kg packet of brown sugar selling at a recommended retail price of K1,100 and a 1kg packet of white sugar will now be sold at K1,155.
lllovo Sugar Malawi Managing Director Lekani Katandula confirmed the development, saying the revision has been triggered by a sharp rise in the prices of inputs such as fertilizer, fuel, electricity and cost of growing sugarcane.
He also added that the recent devaluation of kwacha has also contributed to the rise of sugar prices.
The development comes barely two weeks after retailers and wholesalers hoarded the commodity in anticipation of a rise in prices.
It took the Minister of Trade and Industry Mark Katsonga Phiri’s visit to the sugar manufacturing plantation in Nchalo, Chikwawa, where he ordered the company to make the product available in super markets, as well as in shops and make in affordable.
At the time of the scarcity of sugar, vendors and shop owners took advantage to sell it at as high as between K1 300 to K1 500 from the recommended price of K870.