Days after announcing the reduction in the price of cement, the BUA Group has increased the prices of sugar, flour and spaghetti products, investigation revealed.
DAILY NIGERIAN reports that the management of BUA Group had on October 1 announced the reduction in ex-factory price of cement product to N3,500 per bag, which means only direct suppliers will buy the product at N3,500 per bag, while the retail price is almost unchanged.
However, a market survey conducted by this newspaper indicated that BUA has silently increased prices of its sugar, flour and pasta products.
Our reporter who went round some shops at the popular Kano Singer Market in Kano observed that the prices of a bag of sugar, flour and a carton of spaghetti have increased by N3,500, N2,000 and at least N1,000 respectively.
Checks by this newspaper show that while the price of sugar was recently sold at N44,000 per bag, spaghetti N8,100 a carton, and a bag of flour at N32,500, the commodities are now being sold at N47,500, N9,000 and N34,500 respectively.
A dealer of BUA Foods in Kano told our reporter that the increase in prices of the commodities followed immediately after the company announced the reduction of its cement product.
According to the dealer who preferred to remain anonymous the increase in the prices began this week.
He confirmed that the price of a carton of IRS Spaghetti, a pasta product of the BUA Foods, is now N9,000 a carton at company price, while it was recently sold at N8,400 a carton, an indication that it could reach up to N10,000 at retail price.
He said: “We have observed the increase this week. Price of a bag of flour has now gone up to N34,500 as against the N31,000 to N32,000 sold last week. About N2,000 has been increased on a bag of flour and it is a company price.
“On sugar, there is no standard price but it is sold up to N48,000 now in the market. It was N44,500 to N45,000 per bag just last week. Somebody told me that he is selling it at N46,500 per bag.
“They have just notified us about the increase this week. They normally communicate to us through telephone call.
“I also want to tell you that all these prices are company prices,” he stressed.
Our investigation also revealed that price of the commodities had already gone up at retail outlets in Kano city.
A grocery shop owner at Karkasara area of Tarauni Local Government area, Mallam Mustapha, told our reporter that he sold a bag of 50kg sugar at N49,000 after purchase from dealers at N47,500.
Another shop owner, who operates in Fagge area, Ibrahim Musa, said he had also observed a sudden increment in the prices of sugar, flour and IRS spaghetti in his area.
According to him, he purchased a 50kg bag of sugar at N48,000 from dealers, a bag of flour at N33,000 and IRS spaghetti at N9,100.
He lamented that he is recording a low patronage, saying that it took him about two weeks to sell a bag of flour.
“You know there is no money in the hands of people. Before I purchased this flour, the one supplied last time took almost two weeks before it finished.
“We are recording low patronage. People are in poverty and the patronage is low. We just thank God and pray for His intervention,” Mr Ibrahim said.
Customers also expressed displeasure over the recent increment of the BUA food products.
Hajiya Iyami, one of the major customers that purchase bags of flour for baking Gurasa, a locally-made food staple in Kano, lamented that the price of the product has kept rising overtime.
She said the price is rising day in day out from three years ago, recalling that the price had skyrocketed from just N5,500 per bag to N35,500.
“I have just bought a bag of flour at N34,500. We call on the BUA to reduce the price of flour as we heard that he reduced the price of cement,” Mrs Iyami appealed.
Reacting to the report in a statement sent to DAILY NIGERIAN, the company said it was not only BUA foods that increased its prices recently, saying its major competitors have also done the same.
The company, however, said its products are still the cheapest in the market.
“BUA Foods is not the only food company that has increased the price of its products in recent times.
“Our competitors have done the same, and with whatever increase people may be noticing, our food product prices are still the lowest in the market.
“I will advise that whoever does the market price survey should not stop at BUA food product prices but compare same with other food products in the market,” the statement added.
