EthCo decries raw materials deficit
Ethanol Company (Ethco) Limited, a subsidiary of Press Corporation Limited (PCL) based at Dwangwa in Nkhotakota, has said it is utilising only 50 percent of its plant’s capacity because of lack of raw materials for production of ethanol.
The company has since challenged that it will offer competitive prices to sugarcane growers who may choose to sell their canes, which produces raw materials for production of ethanol, to them this year.
EthCooutgrower development manager Brian Namata made the remarks on Friday during a tour that members of Kabadwa Cane Growers Scheme in Nkhotakota made to Phata Cane Cooperative in Chikwawa.
He said the company is currently relying on molasses which they buy from Illovo Sugar (Malawi) Limited plant at Dwangwa in Nkhotakota.
Said Namata: “But these have not been sufficient to enable us produce enough ethanol. Hence, we decided to start producing ethanol direct from canes.
“To realise our dream, we have launched an initiative called Project Rama [raw materials] to mobilise farmers in Chikwawa and Nkhotakota to produce more sugarcane and sell to us and we are assuring them of competitive prices.”
He said through Project Rama, EthCo is targeting 2 000 hectares of cane farms in Nkhotakota and another 2 270 in Chikwawa.
Namata expressed hope that this will meet its minimum demand of 400 000 tonnes of sugarcane for its factories in the two districts.
Phata Cane Growers Cooperative executive chairperson Wiston Yohane said the continued drop in prices of sugar on the international market is one of the major concerns among cane growers in the country.
He said low prices have resulted in local cane growers not to earn enough from their produce.
“But I would like to believe that things will improve with the coming of EthCo on the market. Competition on the market is critical as it helps farmers gain more from their produce,” he said.
Apart from growing cane, Phata Cane Growers are also into aquaculture, maize farming, beekeeping and fruit production.
The objective of the tour was to allow growers to share techniques, experiences and lessons in the sugarcane industry.
EthCo sister company, Chikwawa-based Presscane Limited, embarked on a $70 million (about K50 billion) project to increase ethanol production by engaging farmers to grow and sell the sugarcane to the ethanol distillery company.
The project is targeting 1 500 farmers in the sugarcane-growing area of Chikwawa, covering about 15 group village heads in the district.
Last year, Presscane also launched Ethanol Driven Vehicles Project (EDVP) with the installation of conversion kits in about 50 vehicles to enable motorists choose either using ethanol as a standalone fuel or a blend of ethanol and petrol.
