By Martha Kachingwe Phiri–LILONGWE
Government has ordered Illovo Sugar Limited to reduce the price of sugar within a week for the benefit of both consumers and industries that use the commodity as raw material.
Trade and Industry Minister, Simplex Chithyola says the resolution was reached following a meeting on 11th June 2023 that drew together himself, Finance Minister, Sosten Gwengwe, Illovo Board Chairperson, Jimmy Lipunga and its Managing Director Lekani Katandula.
He adds the company, which is the sole producer of the industrial sugar, committed to reduce the price within seven days.
Currently, a kilogram packet of sugar fetches at least K 150 0.
“Government emphasised the point that should Illovo not comply to reduce the price of sugar within a week, it will have no option but compelled to issue more import licenses to more industry players to help cushion the price of commodities that use sugar as raw materials using relevant provisions in the Control of Goods Act 2018,” says Chithyola.
Meanwhile, Center for Democracy and Economic Development Initiatives-CDEDI, which earlier demanded an inquiry on sugar production and pricing, maintains its stand on the matter.
“You may notice that this particular statement is tackling one aspect of industrial sugar, secondly we are not sure of the reduction margins. So the fight is still on until an ordinary citizen is able to afford the commodity just like the case in all the neighboring countries,” says CDEDI Executive Director Sylvester Namiwa.
He adds they will shortly make an official position on the matter; disclosing Trade and Industry Committee of Parliament is handling their demand.
Previously, Illovo Sugar Limited expressed reservations on the government’s decision to issue two sugar import licences to Mugisha Investments to bring in 20 000 metric tonnes (MT) of brown sugar, local giant Illovo Sugar (Malawi) plc has protested.
It argued that would affect earnings of sugarcane growers. Again, the company argued that the import licences were issued in disregard of the Control of Goods Act which among others requires that the minister makes consultations before such licences are issued.
