The Zimbabwean government has rejected sugarcane millers’ claims that it lacks the authority to set the revenue-sharing ratio between farmers and millers.
Industry and Commerce Minister Mangaliso Ndlovu asserts that the Sugar Production Control Act empowers him to regulate sugar manufacturing, sugarcane delivery, and pricing.
The dispute revolves around the new Division of Proceeds (DoP) ratio, which favors farmers with an 80.5:19.5 percent share, an increase from the 77:23 ratio recommended by Ernst & Young in 2016.
Both farmers and millers contested the 2016 ratio, leading to an interim validation by Baker Tilly, which proposed the new DoP.
However, millers argue that Minister Ndlovu overstepped his authority by unilaterally setting the ratios and that the validation process was flawed, resulting in an unfair recommendation.
Tongaat Hulett, owner of Triangle and Hippo Valley Estates, has taken the matter to the High Court, seeking to overturn the new DoP.
“The DoP validation exercise was well-founded, regular, reasonable and just,” argues Minister Ndlovu.
“My actions were intra vires. As the Minister of Industry and Commerce, I acted within the scope of my authority in determining the Division of Proceeds.
“Section 10 of the Sugar Production Control Act [Chapter 18:19] empowers me to set the price paid to farmers for delivered sugarcane.”
