Malawi govt warn vendors on cashing on cement scarcity
The Ministry of Industry, Trade and Tourism has warned that it will take punitive action against vendors taking advantage of cement shortage on the local market to charge consumers more than recommended price.
The country is experiencing scarcity of cement on the market which has made some vendors to hike the commodity’s retail price from between K6000 and K6500 to about K10000 per a 50kg bag.
In a statement signed by principal secretary for trade, Dr. Joseph Mkandawire, the Ministry regrets that following the current scarcity of cement, vendors and sellers of cement have taken advantage of the prevailing situation.
“The Ministry has held discussions with the cement industry on the matter as well as issued import permits for cement in order to fill the existing gap of cement supply,” explained Mkandawire in the statement.
He said Government is also casting the net wider on sources of supply to make sure that traditional cement sources are not overstretched.
“In addition, the Government has done its research on the prices of cement and concluded that the average retail market price of a 50 kg bag is between MK6,000.00 and MK6,500.00.
“However, some unscrupulous business persons have taken advantage of the situation by charging up to MK10,000.00 per 50kg bag of cement.”
Mkandawire said government will take punitive measures against anyone offering prices higher than the recommended ones in accordance with the provisions of the relevant Laws of Malawi.
He added: “Government wishes to inform the general public that it will continue monitoring the situation and ensure that the commodity is available on the market.”
I bought a pocket of cement- Dangote – to be precise on Wednesday this week at K10,000 here in Area 18, Lilongwe. In September I bought the same at K6,500. What does that mean on production of the product with frequent electricity blackouts?
Close shops overcharging on cements, it is a commoddity of national interest,
Where is the liberalization of trade Dr. PS of trade here which atcheya/kuchitekete introduced?
Next will be Sugar.It seems the govt is clueless as to the cause of price soaring. You are busy intimidating vendors instead of ending the persistent blackouts which have rendered companies helpless
Bodza ili cement costs 6850 at one of the producers how can one sell it at six or six five? the reason for the hikes is simple, there is no electricity in malawi. therefore production has miserably gone down. if the government does its responsibility by providing normal power things will be normal. may the government stop making unnecessary noise on this issue instead concentrate on restoring electricity in our country. the head of state is busy wooing international investors to invest here when he is failing to supply enough energy for the few industries already here, how does he… Read more »
Salima 8500 MK
I don”t know which planet Dr Mkandawire is from. Lafarge sells its cement to vendors at MK6,850 while Cement Products (Zagaf) sells at MK6,874 – this is for Duracrete and Njati respectively. If you add transportation costs and a small margin of 4%-5%, this should come to over MK7,300. How in hell do you expect a vendor to sell this cement at MK6,500? And when did this industry establish a recommended retail price? And when did we do away with the forces of demand and supply being responsible for the price, especially in an open and competitive environment?
very true bro…let them go back and visit their books
Admit! Government has run out of ideas. To stop overcharging by vendors, make cement available. Electricity blackouts is major contributor. Is your verbal warning equals cement availability ? If I were you I would have shut up your stinky toilet. Mwatikwana! What else do you expect from Malawians?
Man-made problems. Mhuu!
just remove permit so that who can afford to import should do so