MALAWI: Government Cracks Down On Fertiliser And Animal Feed Price Hikes

By Smile Hamilton, Malawi 

The Ministry of Industry and Trade has ordered 11 companies to immediately stop their recent price hikes on fertiliser and animal feed, citing unfair trading practices.

This move comes amid growing concerns over market instability, with rising costs putting additional pressure on farmers and consumers.

Many farmers, already struggling with economic hardships, had expressed fears that the higher costs of fertiliser and animal feed would directly impact food production and livestock management, ultimately leading to increased food prices across the country.

Preliminary investigations revealed that the affected companies had implemented price adjustments that were not justified by production costs, with some firms accused of exploiting market conditions by artificially inflating prices.

The government has warned that failure to comply with the directive could result in penalties, including fines or even suspension of trading licenses for companies found guilty of market manipulation.

While consumer advocacy groups and farmer associations have welcomed the government’s intervention, some business representatives have raised concerns over regulatory interference.

Economic analysts have highlighted the importance of balancing market regulation with business sustainability, urging the government to engage with industry players to find long-term solutions that address both consumer protection and the rising costs of production.

The Ministry has assured the public that it will continue to monitor the market closely, encouraging farmers and consumers to report any suspected cases of price manipulation to the relevant authorities.

This development comes after a study by the COMESA Competition Commission revealed that Malawi is among countries with exorbitant fertiliser prices in southern and eastern Africa.

The Fertiliser Association of Malawi had attributed the spike in fertiliser prices to international prices that have gone up due to increased cost of raw materials, manufacturing, and logistical bottlenecks.