Sugarcane growers from Dwangwa and Nkhotakota have demanded for an upward revision of the division of proceeds to enhance revenue payable to farmers, while calling on the Competition and Fair Trading Commission (CFTC) to address claims of unfair trade practices.
The farmer’s grievances follow after unsatisfactory business between them and Illovo Sugar Malawi, as the farmers want a clause removed from their agreements. The clause indicates that Illovo will be buying sugarcane from out-growers, but on the contrary, the manufacturer mills sugarcane produced by out-growers, packs the commodity, transports it to the market and sells it on behalf of the out-growers. On the other hand, Sugarcane growers also want to have access to all accounts, records, invoices and other documents relevant to the assessment of any price paid by Dwangwa Sugar Corporation for cane supplied to it.
“With immediate effect, the Cane Supply Agreement must highlight molasses as a stand-alone product of sugarcane processing and its economic value to the out-grower must be clearly acknowledged.” says part of a statement signed by Nkhotakota North legislator Henry Chimunthu Banda, who is also representing the body of the said sugar farmers.
Speaking to The Nation newspaper, CFTC spokesperson Innocent Helema said the technical committee of the board of commissioners of CFTC will meet today in Lilongwe to receive investigation reports and adjudicate on cases of competition and consumer protection.