CDEDI calls for immediate action on dehumanising cartels, monopolies in Sugar industry

By Iommie Chiwalo

The persistent exploitation of Malawians by Sugar producers has compelled Centre for Democracy and Economic Development Initiatives (CDEDI) to exercise its watchdog role by calling for an immediate action towards protecting consumers.

Addressing the press in Lilongwe CDEDI Executive Director, Sylvester Namiwa, says recent announcements of increase in both Illovo and Salima sugar brands are regrettable since have laid bare Malawians’ vulnerability to dehumanizing cartels and monopolies.

“Actually, it has left us at CDEDI wondering whether there is anyone in Government who cares about the suffering Malawians are going through because of the harsh economic environment,” he said.

Namiwa has also expressed displeasure over the current situation because there has been no official communication from either the line ministry or Illovo justifying the scarcity of the product that has given birth to the increased prices.

He says it was expected that Illovo should have flooded the market with its sugar before increasing the price.

“In the case of the sugar industry, Malawians have a reason to feel let down by Minister of Trade and Industry Sosten Gwengwe under whose watch major players in the sugar industry have been left to do as they please at the expense of the well-being of the country’s poor majority,” he said.

He has therefore challenged both Illovo and Salima sugar companies to withhold their price hikes until the supply of the commodity has improved across the country.

Adding that his organisation feels vindicated that the prevailing sugar crisis is artificial and was tactically crafted to push the unsuspecting consumers into the narrative that the commodity ought to be on the market at any price suitable to the producer.

“This is not only unfair but, also unacceptable as the company has merely succeeded in creating panic and pushing the price of the commodity further on the parallel market.

The CDEDI Executive Director has since challenged Leader of the House in Parliament
Richard Chimwendo Banda to justify Parliament’s failure to adopt the report by
the Committee on Trade and Industry on the sugar pricing issue in the past
two sittings of the House.

He has questioned on why Parliament is sitting on the July 2023 initial public inquiry into sugar pricing and production conducted by the Parliamentary Committee on Trade and Industry which recommended a 25 percent sugar price reduction.

“The aforementioned, has prompted CDEDI to suspect that Government is allowing players in the sugar industry to use legal instruments that were supposed to protect consumers from exploitation and unfair trading practices to punish them as previously observed in August 2023 whereby Illovo sought an injunction restraining the Ministry of Trade and Industry from effecting a 25 percent sugar price cut on one hand, while on the other hand, also, restraining the Director of Public Prosecutions from commencing criminal proceedings against the company for allegedly violating the Competition and Fair-Trading Act,” he highlighted.

Namiwa has asked Attorney General Thabo Chakaka-Nyirenda to urgently move in to liberate Malawians by ensuring that the injunction is lifted.

It is surprising on why the concerned parties are moving at a snail’s pace considering that CFTC already applied to have the injunction vacated and a hearing was done in October 2023, where the court promised to rule on the matter within 30 days.

Since the issue at hand is interdependent, Namiwa has also pointed out that Agriculture Minister Sam Kawale owes the nation an explanation as to what is holding the long-awaited Sugar Bill of 2021 which those in the know believe has the potential to bring sanity in the sugar industry and also, help to address perpetual forex crisis.

“Simply put, the recent soaring prices of basic commodities have sent tongues wagging as to what has been the role of Salima Sugar Company, and beg the question as to whose interests the company is serving? This is so given that besides the unavailability of its sugar on the market, its pricing shows traits of collusion with Illovo,” he said.

According to Namiwa, the current trends put Malawians anxiously awaiting to hear from the AG on what has become of Salima Sugar Company which was establishment to solely offer the much needed competition in the country’s sugar industry.

Both Illovo Sugar Company and Salima Sugar Company are justifying the price hiking by saying that production costs are high.

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