The Parliamentary Committee on Industry, Trade and Tourism says it is assessing the sugar pricing structure in Malawi compared to neighbouring countries before it makes recommendations.
The committee’s chairperson Paul Nkhoma said this on Saturday at Muloza Border Post in Mulanje when the committee engaged Malawi Stock Exchange-listed Illovo Sugar (Malawi) plc management for a practical demonstration of local sugar prices compared to neighbouring countries.
The meeting followed mounting pressure from consumers who feel local sugar prices are exorbitant and require import competition.
The development has since seen the Ministry of Trade and Industry issuing two sugar import licences to Mugisha Investments to bring in 20 000 metric tonnes (MT) of brown sugar, a development Illovo Sugar (Malawi) plc has protested against, saying this will affect local manufacturers.
In an interview, Nkhoma while indicating that the exercise revealed that sugar prices are lower in Malawi when compared to Mozambique, said the committee will continue with its inquiry to get a full picture of the pricing structure.
He said: “This is an important exercise which has partly revealed that in this part of the country which borders Mozambique, sugar is cheaper.
“We, however continue to reach out to other stakeholders for a better picture before we can make recommendations on the issues surrounding the sugar industry.”
Illovo Sugar (Malawi) plc managing director Lekani Katandula maintained that sugar pricing remains competitive, adding that the issuance of the import licences will impact sugar stakeholders, including Illovo negatively.
He said: “The truth of the matter is that sugar prices in Malawi are cheaper than in neighbouring countries. For instance in Mozambique, a one kilogramme packet of sugar is selling at 75 metical which converts to $1.15 [about K1 190] in Malawi, In Zambia, the price is at K24 which is equivalent to $1.21 [K1 253]. In Tanzania, the price is at 3 000 shillings which is equivalent to $1.26 [K1 300] per kg.
“When we take our price of K1 500 per kg, we see that our price is cheaper at 94 cents [K973] per kg compared to all these countries. Border traders buy from where sugar is cheaper and we have seen here that they are buying from us at K27 000 for a bale and selling the same at K32 000 in their countries.”
Katandula said importing sugar when local production is adequate, is exporting jobs which could have benefitted Malawians.
Last week, Consumers Association of Malawi executive director John Kapito accused the government for failing to protect consumers, saying they are paying more to access sugar.
