Africa-Press – Malawi. Some parts of the country are facing the problem of sugar shortage, prompting local shops to implement rationing measures. The development has riled the Competition and Fair Trading Commission (CFTC), which has blamed some business entities for hoarding the commodity.
Spot-checks we conducted in some shops yesterday revealed that most shelves were devoid of the commodity, with some outlets rationing the commodity while others are selling it at a higher price.
In Blantyre, for instance, most shops had run out of the commodity. At one of the supermarkets, we found empty shelves but one of the shop attendants told us that they did not have the commodity.
In some shops, we found a kilogramme of sugar selling at K2,500. One of the buyers we met at Chipiku Stores at Ginnery Corner in Blantyre said he was happy to have bought the commodity.
“I have been looking for the commodity but it is not available in most shops. I am finally happy to have bought these three packets, which will take me some weeks,” Amosi Bvutula from Manja Township said.
The situation was similar in Mzuzu City, where most shops limited the number of packets one could buy to one per person, signaling a notable disruption in the availability of the commodity.
In Lilongwe, spot-checks showed that the price of sugar in most shops had gone up, with some selling it at as high as K2,700. Meanwhile, CFTC has faulted some businesspersons and entities for hoarding the commodity. In a statement released yesterday by executive director Lloyds Vincent Nkhoma, it says snap inspections revealed some under-hand dealings.
“The Competition and Fair Trading Commission has noted with concern reports regarding the proliferation of anticompetitive and unfair business practices emanating from the alleged shortage of sugar on the market. In response to these reports, CFTC conducted snap inspections in selected markets to ascertain these allegations.
“During these inspections, the commission found that some suppliers are engaging in the following malpractices, among others: Hoarding of sugar at distributor level. Exorbitant pricing of the product beyond the recommended retail price. Tying the purchase of sugar to the purchase of other products. Charging higher prices for sugar while issuing lower valued receipts,” the statement says.
CFTC then reminds suppliers, consumers and the general public that business malpractices involving hoarding, excessive pricing, tying, misleading consumers as to price of a product with the view to take advantage of a situation, among others, are violations of the Competition and Fair Trading Act (CFTA).
“All suppliers found engaging in such malpractices will be dealt with in accordance with the CFTA. CFTC is also encouraging the general public to be very proactive in reporting any possible violations, including the above mentioned malpractices,” it says.
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