Illovo Bow Down To Government Demand On Sugar Price

Government says Illovo Sugar Malawi has agreed to reduce the price of sugar within a week following government’s threat to issue more sugar import licences.In a statement that has been issued today, Minister of Trade and Industry Simplex Chithyola Banda says the ministry had a meeting with the company that was called to resolve the concerns following government’s decision to issue sugar import licences to traders.

The engagement meeting was held on 11 this month , where Minister of Finance Sosten Gwengwe and Minister of Trade and Industry Simplex Chithyola Banda represented the government side while Illovo Board Chairperson Jimmy Lipunga and Managing Director Lekani Katandula represented Illovo Sugar.Banda said that the discussions centered on pricing of sugar by IIIovo surgar LTD where the company is the sole producer of the commodity (Industry Sugar).

He added that government wants IIIovo to reduce within a week for the benefit of both consumers and industries that use sugar as a raw material.“In regard, IIIovo Sugar Ltd committed to reduce the price within 7 days effective from the date of the release,” said Banda.

He then commended how the discussions went and said that they are looking forward to close cooperation with the Sugar Industry in the country for inclusive and prosperous Malawi.In an interview, Centre for Democracy and Economic Development Initiatives (CDEDI) Sylvester Namiwa said that much as this is a progressive move, it does not override their demand for an inquiry into sugar production and pricing because the statement is tackling one aspect of industrial sugar.

He went on to say that the fight will still go on until an ordinary citizen is able to afford the commodity just like the case in all the neighboring countries.“Nonetheless, shortly we will make an official position but the demand for an inquiry stands. Malawians and all consumers may wish to know that the Trade and Industry Committee of Parliament is handling our demand. CDEDI feels vindicated that Malawians were being skinned alive with high sugar prices,” he said.

Last week, CDEDI wrote the Public Accounts Committee (PAC) of Parliament and the Parliamentary Committee on Trade and Industry to conduct a public inquiry on sugar production and pricing in the country.Illovo angered Malawians last year when it raised sugar prices “to curb illegal export of the commodity