Sugar manufacturer, Illovo Sugar (Malawi) Limited has silently hiked the prices of the commodity without any justification.
The increase comes at a time the country’s inflation is still at single digit and the central bank is touting Kwacha’s stability against major foreign currencies.
In a document Nyasa Times has sourced, indicate that Illovo Sugar Malawi has hiked sugar prices by an average K45.65 with effect from last Friday 6th April, 2018. The hike means a 1kg packet of brown sugar is selling at K823.87 from K778.22 while white sugar is at K822.72.
According to the document, the price for 50 kilograms of brown bulk will be at K39, 495.62 from K37 221.75 per bale while white bulk will be at K39, 901.40 from K37 571.25 per bale. This means consumers will be paying K15, 950. 46 per bale for 10 packets of 2kgs each for both white and brown pre-pack.
Illovo Public Relations Officer, Irene Phalula could not immediately comment on the price increase.
The increases also comes months after the company’s board revealed that was considering of using rights issue to settle its outstanding debt of over K32 billion accumulated over the last two years.
The debt according to the company accumulated because of a substantial decline in world markets coupled with significant drop in domestic sugar sales.
Illovo Sugar Malawi is the country’s major supplier of sugar producing around 270 000 tons of sugar annually with over 60 percent sold on the domestic market.