Sugar players for law to regulate industry

Sugarcane Growers Association of Malawi (Sugam) has called for enactment of law to govern the sugar industry and address prevailing challenges.

Speaking on Sunday in Lilongwe, Sugam chairperson Robert Dziweni lamented that the industry has operated without a law for long, as such, there are various problems, including prices of sugar, exploitation of farmers and conflicts on licences on sugar imports.

He called on government to ensure that the Sugar bill is tabled in Parliament and passed into law.

“We have been pushing to have such a law since 2014 but we still don’t have such a law,” said Dziweni.

The association’s member Henry Chimunthu Banda said there was lack of sanity in the sugar industry; as such, there is need for the Sugar Bill to be passed into law.

The Bill provides for the establishment of a commission to regulate the industry, among others.

Chimunthu Banda, who is also Nkhotakota North lawmaker, said consumers will benefit from the inputs of a neutral body that will regulate the industry, adding that complaints about sugar prices will be addressed.

Ministry of Agriculture Principal Secretary Dickxie Kampani asked for more time before commenting on the matter.

But speaking in an interview on Monday, Parliamentary Committee on Agriculture chairperson Sameer Suleman said it is sad that the industry, which has the potential to boost foreign exchange earnings and create more jobs and businesses, is not being regulated.

He said the country needs to move with time as a number of things have changed and the industry cannot continue to operate without being regulated.

The calls come at a time the Ministry of Trade and Industry and Illovo Sugar (Malawi) plc are locked in a dispute over the award of two sugar import licences.

The ministry asked the Malawi Stock Exchange-listed Illovo (Sugar) Malawi plc to reduce the price of industrial sugar within  seven days, but the manufacturer, said pricing is revised based on internal assessments of variables.

The Sugar Bill is expected to put in place a  comprehensive legal regime to regulate and control the growing and sale of sugarcane and any other sugar producing crop and the manufacturing, refining, marketing and disposal of sugar and sugar products, including by-products.

The Bill will establish the Malawi Sugar Industry Commission which will monitor, oversee and coordinate all activities relating to the sugar industry to ensure a fair, efficient and effective administration of the industry.