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BUA debunks suspension of sugar sales, says no to price hike

By Benjamin Alade
15 February 2022   |   4:02 am
Following the alleged suspension of sugar sales by other players, BUA Foods Plc has reaffirmed its commitment to the sale of the commodity.

Following the alleged suspension of sugar sales by other players, BUA Foods Plc has reaffirmed its commitment to the sale of the commodity.

The company also assured its customers that there would be no hike in price of the commodity.

In an advertorial signed by its management and published yesterday, titled, ‘Re: Suspension of sugar sales’, BUA said: “We would like to reassure our customers that BUA is not joining the suspension of sales of sugar.

In our opinion, this stoppage may be intended to create scarcity, force the prices to artificially go up, and profiteer even more.”

The company noted that the government should not be blackmailed into rescinding a compliance-based decision and the process should be allowed to follow its due and proper course.

“In any event, we would like to reiterate that BUA does not intend to join this suspension of sugar sales nor increase prices between now and Ramadan (a peak demand period for Sugar) as the others have done.

“For further context and clarity, BUA has enough capacity between its Lagos Sugar Refinery and Port Harcourt Sugar Refinery with a combined capacity of 1.5million metric tonnes to meet about 90 per cent capacity of the local demand in Nigeria. If need be, BUA is ready to stop all sugar exports and channel that to meet local demand.

“BUA has always made it clear that our Port Harcourt sugar operation is always ready to supplement sugar supply if there is scarcity, as we have done in the past in similar situations in 2020 and 2021. We therefore, want to reassure our customers that there is nothing to fear as between our Lagos Sugar Refinery and the Port Harcourt Sugar Refinery; we have enough sugar to take care of local demand regardless of the actions of the other players.” it added.

The company urged customers and dealers to ensure there is no panic buying, and not to withhold stock, as there is enough sugar to sustain the market between now and after Ramadan, which starts in the next six weeks.

“BUA remains committed to ensuring the price of sugar is not increased during this holy period and we will continue to sell at the same price. Our dealers are therefore enjoined to continue to pay the same price for sugar from us as they have always done.

“We also wish to advise that any customer of ours found selling sugar higher than the market price or withholding sugar to create scarcity, will be immediately delisted as our dealer,” the statement read in part.

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