By Isaac Salima:
Sugar produced by Salima Sugar Company is still not available for domestic use on the market amid the scarcity of the commodity in the country.
Reports of a pending sugar shortage started making rounds some days ago and became reality this week, when most shops ran out of the commodity.
However, some consumers are questioning the unavailability of sugar made by Salima Sugar Company on the market despite that the company was established to supplement sugar made by other companies in Malawi.
Salima Sugar Company Board Chairperson Wester Kossam said their sugar already finished sometime back.
“We have been packaging our products (sugar) mainly in 50-kilogramme bags, with little [of the same] in small packets for domestic use. The bags were also sold on wholesale to shop owners, with those from [Asia] being prioritised,” Kossam said.
He further said the firm is undergoing reforms such that, this season, they will supply sugar for domestic use.
“You understand that the company was dominated by [Asians] and, as such, they were not doing some things right as, in terms of business, they were favouring themselves and their colleagues. Now we would like to change things as, this season, we are looking for suppliers in order to make the products available on the market,” Kossam said.
“We have not served Malawians better because our sugar has not been readily available on the market. We are now advertising that those who would like to be our distributors should apply in order to make the sugar [available] in localities,” he added.
Salima Sugar Company Limited was established in 2018 as a government joint venture.
Aum Sugar and Allied Company Limited from India had 60 percent of shares, with 40 percent of the shares held by the Malawi Government through the Greenbelt Authority.
Recently, the Malawi Government terminated its shareholding deal with Aum Sugar and Allied Limited due to alleged breach of contract.
Last season, Salima Sugar Company produced 22 metric tonnes of sugar.
The company has sugarcane fields in Salima District and also relies on out-growers within the district and Nkhotakota.
However, fires set by some community members have been hampering production in Salima District.
Meanwhile, economist Greenson Nyirenda has said management deficiencies have been a major issue at the company.
“I think we have to work on the management because the company has enough capacity to produce more sugar but, then, why is it failing? Being owned by Malawians, there is a need for the company to be producing reports on how it is fairing,” Nyirenda said.
This is transpiring at a time some parts of the country are facing the problem of sugar shortage, prompting local shops to implement rationing measures.
The development has riled the Competition and Fair Trading Commission (CFTC), which has blamed some business entities for hoarding the commodity.
In a statement signed by executive director Lloyds Vincent Nkhoma, the commission indicated that snap inspections it conducted revealed some under-hand dealings.
“The Competition and Fair Trading Commission has noted with concern reports regarding the proliferation of anticompetitive and unfair business practices emanating from the alleged shortage of sugar on the market. In response to these reports, CFTC conducted snap inspections in selected markets to ascertain these allegations.
“During these inspections, the commission found that some suppliers are engaging in the following malpractices, among others: Hoarding of sugar at distributor level. Exorbitant pricing of the product beyond the recommended retail price. Tying the purchase of sugar to the purchase of other products. Charging higher prices for sugar while issuing lower valued receipts,” the statement says.
CFTC then reminds suppliers, consumers and the general public that business malpractices involving hoarding, excessive pricing, tying, misleading consumers as to the price of a product with the view to take advantage of a situation, among others, are violations of the Competition and Fair Trading Act (CFTA).
“All suppliers found engaging in such malpractices will be dealt with in accordance with the CFTA. CFTC is also encouraging the general public to be very proactive in reporting any possible violations, including the above mentioned malpractices…, ” the statement reads.
