CFTC says some distributors hoarding sugar, warns of action
The Competition and Fair Trading Commission (CFTC) has said some distributors are hoarding sugar, a conduct which the consumer protection agency says is against the law.
In a statement issued on Monday, signed by CFTC Executive Director, Lloyds Vincent Nkhoma, the Commissions said it has noted with concern reports regarding the increase in anticompetitive and unfair business practices due to allegations of shortage of sugar on the market.
Random inspections by Nyasatimes have found that sugar prices have recently gone up with others charging as high as K2800.00 per 1kg packet with other traders rationing the product.
In response to these reports, Nkhoma said in the statement, CFTC conducted snap inspections in selected markets to ascertain these allegations.
“During these inspections, the Commission found that some suppliers are engaging in 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, and charging higher prices for sugar while issuing lower valued receipts,” reads the statement in part.
Nkhoma added that hoarding, excessive pricing, tying, misleading consumers as to price of a product with the view to take advantage of a situation, are violations of the Competition and Fair Trading Act (CFTA) and that aAll suppliers found engaging in such malpractices will be dealt with in accordance with the CFTA.
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