South African competition commission stops big retailer from hiking ginger and garlic price

Garlic. (Photo by People’s Daily Online)
Garlic. (Photo by People’s Daily Online)

South Africa’s Competition Commission has reached an agreement with one of the country’s biggest retailers Pick n Pay to cap its gross profit margin for ginger and garlic, said the commission on Monday.

“Pick n Pay has also instructed its franchises, to price no higher than the corporate store price on ginger and garlic. The Commission has commended Pick n Pay for this move and hopes to formalize similar agreements reached with other national retailers,” said Commission spokesperson Siyabulela Makunga.

This comes after many retailers were accused of increasing prices of ginger and garlic.People in South Africa get used to mix ginger, garlic and honey to make a concoction to manage common colds and some even use this method to try to combat the symptom of COVID-19.

Makunga said they received lots of complaints alleging that Food Lovers, Spar, Shoprite, Checkers and Pick n Pay stores, had increased prizes of ginger and garlic.

Makunga said, “Whilst wholesale prices for these products had increased due to heightened consumer demand during the second wave of infections, the Commission is of the view that this did not warrant the large increase in absolute margins seen in some instances.”

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