Illovo Sugar (Malawi) plc has attributed the current scarcity of sugar in some parts of the country to the late opening of its crushing season and illegal exports.
Illovo Sugar (Malawi) plc acting managing director Kondwani Msimuko, in an interview said the country’s major sugar manufacturer delayed to open its factory due to weather-related factors.
He said: “The first reason is that informal crossborder trade has led to sugar being diverted by local traders to neighbouring countries. This has created a shortage in some areas of the local market, despite Illovo having released sufficient stocks to meet domestic demand.
“The second reason is due to the delayed start of our 2025 crushing season at both Nchalo [in Chikwawa] and Dwangwa [in Nkhotakota] estates caused by ongoing adverse weather conditions, including unexpected rains which have affected field access and slowed down harvesting operations.”
Msimuko said as a result, production is yet to reach full capacity though the company expects the situation to improve as weather conditions stabilise and field operations normalise in the next couple of weeks.
“Illovo remains committed to restoring stable supply and is working closely with all stakeholders to manage the situation,” he said.
Illovo’s main factories at Nchalo and Dwangwa have been crushing sugarcane since April.
In Blantyre, main retail shops, including Shoprite, Sana and Chipiku ran out of sugar yesterday while those shops which had the commodity in stock were rationing.
But Consumers Association of Malawi executive director John Kapito blamed Illovo and the Ministry of Trade and Industry for not explaining to Malawians what is happening as the scarcity comes at a time sugar crushing season is underway.
He said: “It’s really shocking that from nowhere, there is scarcity of sugar on the market, triggering high prices. Unfortunately, both Illovo and the Ministry of Trade have not made any statements. It’s absurd coming at the wrong time.”
When contacted, Ministry of Trade and Industry spokesperson Patrick Botha said on informal crossborder trade, the ministry is working with Illovo Sugar to deal with traders that smuggle the commodity outside the country.
“We know that Salima Sugar was doing some maintenance works which affected its production but for Illovo, we expect the company to explain the possible factors. On issues of smuggling, the ministry is working with Illovo to find solutions, including imposing stiff penalties,” he said.
Illovo Sugar (Malawi) has a 97 percent market share. The other local producer is Salima Sugar Company Limited, a joint venture between Malawi Government and private investors.
Illovo Sugar annually cultivates around 1.8 million metric tonnes (MT) in addition to about 350 000MT produced by smallholder farmers.
