Production in full swing as witnessed by Katsonga-Phiri
* He also declared that Illovo should suspend exporting up until domestic supply has normalized
* Despite Illovo’s MD Lekani Katandula saying their their priority is the domestic market and only exports the surplus
* Plans for the future is to increase production so that after meeting the quota for domestic consumption, they should export more
* In line with MW2063 agenda — which highlights that Malawi should become an exporting country than relying on importation
By Duncan Mlanjira
After been assured that Illovo has enhanced its sugar production — both at Nchalo and Dwangwa factories to address the sugar scarcity in the country — Minister of Trade & Industry, Mark Katsonga-Phiri declared an ultimatum that the company’s management shall be summoned before Cabinet Committee if supply does not normalize in a week’s time.
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The Minister paid a visit to Illovo Sugar Malawi’s Nchalo Estate on Saturday in response to the scarcity of the commodity and the high increase of the price that reached up to K1,500 per kg from the recommended price of K900.
Katsonga also declared that Illovo Sugar Malawi Plc should suspend exporting its sugar up until domestic supply has normalized — despite the company’s Managing Director, Lekani Katandula emphasizing that their their priority is the domestic market and only exports the surplus.
Katandula had already assured the Minister and the media present that sugar supply will normalize by end of this week because they have enhanced production to unprecedented levels and it is for the domestic market.
He had emphasized that the scarcity of the commodity was man-made, as discovered through the survey they made that strongly indicates that some unscrupulous traders were of late deliberately hoarding the commodity to create its scarcity in order to increase prices.
The survey that the company made — when it came to their attention of the sugar scarcity on the market — also indicated that illegal exportation of the product to neighbouring countries such as Mozambique, Zambia and Tanzania where Malawi’s Illovo sugar is cheaper, also contributed to the scarcity.
In his statement, Katsonga-Phiri seemed to have asked for the visit having had the suspicion that the scarcity and the increase of the prices was a deliberate move by Illovo to sabotage the Tonse Government administration.
Katsonga-Phiri being taken on a tour of the factory
The presentation made by Katandula — highlighting various challenges and swift measures put in place to flood the market so that those who were hoarding the sugar should be forced to release it and resume selling the sugar at recommended prices of K900 — seemed to have taken the Minister off guard of government’s suspensions.
But he still made the ultimatum of Katandula risking being summoned before the Cabinet Committee as well as declaring that the company should stop forthwith from exporting — even after being told that Illovo Sugar Malawi only exports surplus sugar.
In his response to the exportation, Katandula said they have plans for the future to increase production so that after meeting the quota for domestic consumption, they should export more in line with the MW2063 agenda — which highlights that Malawi should become self-reliant by being an exporting country than relying on importation.
He said exporting goods brings in the much needed forex for the country’s economic development, which at moment is very scarce — thus some traders opting to illegally export sugar to neighbouring countries.
Katsonga-Phiri also assured that forex would soon normalize following the conclusion of the sale of tobacco season.
He also said from his own survey, he discovered that sugar was available in some big supermarkets and selling at recommended prices while the poor were being forced to buy at inflated prices by the unscrupulous traders.
Thus the company’s steps to enhance production that by end of this week, the country should be flooded with enough sugar because this supply is unprecedented just for domestic use, adding that none of this has been reserved for exports because their priority is the domestic market as they export the surplus.
The Minister and the entourage of journalists were accorded a visit to the factory that was in full swing 24/7 a day being supplied with lots of truck-trailers of cane on almost every other 10 minutes.
Figures that Katandula presented showed that as on Saturday, April 30, the company produced and released 256,000 tonnes of sugar into the market; 270,000 tonnes on Sunday, May 1; 241,000 on Monday, May 2; increased to 465,000 tonnes on Tuesday, May 3; 661,000 on Wednesday May 4 and had reached to 700,000 on Thursday.
He also said Illovo always have enough stocks of sugar for domestic consumption to last up to May during the rainy season when it stops production but there were many challenges they faced this season due to weather patterns and effects of Cyclone Ana.
After the discovery that the sugar scarcity was man made by the traders themselves, Illovo Nchalo estate hastened to resume production but they were hindered by the still soft ground on their estates as well as from the supply from the smallholder cane farmers.
Their supply trucks kept getting stuck in mud since sugarcane growing is compact and thus the ground takes longer to dry and at the same time rains kept falling in the Lower Shire.
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