A few days after BUA, one of Nigeria’s leading manufacturing industries announced the reduction of the price of its cement, buyers began to observe the hike in the prices of some foods produced by the factory, particularly sugar, flour, and spaghetti.
The company had on October 1, announced the reduction of the cement price of the product to N3,500 per bag.
However, a market assessment conducted by Solace Base revealed that BUA Foods had silently increased the prices of its sugar, flour, and pasta products.
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The price of sugar was recently sold at N44,000 per bag, spaghetti at 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.
One of the dealers of BUA Foods in Kano said the hike in prices of the commodities followed immediately after the company announced the reduction of its cement product.
He explained that the price of a carton of BUA IRS Spaghetti, a pasta product of BUA Foods, is now N9,000 a carton at the 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. “We have observed the increase this week. The 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.
”About 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.
The findings showed that while the price of sugar was recently sold at N44,000 per bag, spaghetti at 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 Comparatively.
Meanwhile, the announced reduction of the cement price is yet to reflect how the commodity across major markets as it is still being sold at the old price.
Efforts to reach BUA company proved abortive as a major dealer in the state, who mostly speak on behalf of the company said he could no longer speak for now.
