LILONGWE-(MaraviPost)-The country’s civil rights group Centre for Democracy and Economic Development Initiatives (CDEDI) has described Illovo Limited proposal to reduce industrial sugar by 6% as mockery and insults to ordinary Malawians.
CDEDI has wondered as to why domestic sugar prices have not been considered as demanded.
The grouping has therefore challenges Minister of Trade and Industry Simplex Chithyola-Banda that Malawians expect locally-produced sugar to be accessible and affordable to them regardless of their status.
Addressing the news conference on Friday, June 30, 2023 in the capital Lilongwe, CDEDI Executive Director Sylvester Namiwa wants fair trading in sugar.
“Our concern comes amid reports that Illovo Sugar Company has reduced the price of industrial sugar by 6 percent, but has said nothing about the price of domestic sugar which is patronised by the majority poor.
“If these reports are anything to go by, Illovo Sugar is surely taking Malawians for granted because both industrial and domestic sugar are products of the same cane grown in Chikwawa, Salima and Nkhotakota, therefore, a decision
to reduce the price is supposed to apply to both types of sugar,” says Namiwa.
He added, “We at CDEDI, would like to believe that when, on June 26, 2023, Hon Chithyola Banda said government was aware that the general public was anxiously waiting for the good news about sugar price reduction and that parties involved would make submissions, the kind of good news the minister had in mind was about reducing the price of industrial sugar only, and not the domestic one which is mostly used by the vulnerable and marginalized majority.
“Malawians may wish to know that of all the companies that make up Illovo Sugar Africa, namely Eswatini, Malawi, Mozambique, South Africa, Tanzania and Zambia, it is only Illovo Malawi that posts obscene profits. This is justified
by the fact that locally-consumed Malawi sugar is more expensive than the exported one. It’s total exploitation of Malawians”.
Namiwa observes, “Just to illustrate the above, in the year-ending August 31, 2022 Illovo Malawi Financial Statement shows a kilogramme of sugar was sold at 61 percent 1higher locally than exported. During that period under review Illovo was exporting sugar at an average price of MK465.00 while locally a kilo of sugar
was sold at MK733.84.
“It is against this background that CDEDI is challenging the Minister Trade and Industry to demand from Illovo, in the interest of transparency and accountability, to explain to the nation its price buildup—starting from cane production, transportation, crushing, refining to packaging—maybe there is something we are missing in the equation”.
He further adds, “In the same vein, CDEDI, on behalf of millions of low-income consumers, is requesting the Trade and Industry minister to invoke Section 4 of the Control of Goods Act (COGA) of 2018 and declare that sugar is no longer a protected commodity. It is our sincere belief that the COGA was meant to protect interests of Malawians as opposed to shielding monopolies and cartels.
“CDEDI would also like to seize this opportunity to update the nation that, according to the Trade and Industry Parliamentary Committee chairperson Hon. Paul Nkhoma, the committee could not conduct the much-needed public
inquiry on sugar production and pricing on June 27, 2023 because of financial constraints”.
“Last, but not the least, CDEDI wishes to reiterate its commitment to remind Hon Chithyola-Banda about the excitement created among Malawians that the price of sugar would be reduced in seven days.
“It was a message that endeared Malawians to him as someone who understands and appreciates the plight of low-income Malawians, who have for ages been denied access to basic commodities, one of which is sugar,” appeals Namiwa.
Minister Trade Chithyola is yet to make public statement regarding to elapsing of 14 days ultimatum given to Illovo company to reduce sugar prices.