Illovo Sugar Limited has said it did not commit itself to reduce the price of industrial sugar, contrary to what government said Wednesday morning.
In a statement, Minister of Trade and Industry, Simplex Chithyola-Banda said following the engagement (meeting) between Government and Illovo Sugar Ltd that was called to resolve the outstanding matter on imports of industrial sugar into the country, the company agreed to reduce the price within seven days.
Held on Sunday, he said at the meeting, government was represented by The Minister of Finance, Sosten Gwengwe and himself while Illovo Sugar Ltd was represented by The Board Chairperson, Jimmy Lipunga and the Managing Director Lekani Katandula.
“The discussions centered on pricing of sugar (POS) by Illovo Sugar Ltd where the company is the sole producer of the commodity (Industrial Sugar). Government wants Illovo Ltd to reduce the price of sugar within a week for the benefit of both consumers and industries that use sugar as a raw material. In this regard, Illovo Sugar Ltd committed to reduce the price within a week (7 days effective from the date of this Press Release),” he said
However, Illovo Sugar Limited Communications and Stakeholder Relations Manager, Olive Kawelama said that’s not what was agreed at the meeting.
“Our understanding of the discussions was that the ministry requested Illovo to consider revisiting the price of industrial sugar as a condition for the ministry to consider cancelling the licenses for the importation of sugar. Illovo undertook to revert to the ministry within a week and is yet to submit its response as the one week has yet to expire”, Kawelama told Zodiak Online.
Chithyola-Banda threatened that should Illovo not comply to reduce the price of sugar within a week, government will have no option but compelled to issue more import licences to more industry players to help cushion the prices of commodities that use sugar as raw materials using relevant provisions in the Control of Goods Act 2018.
