African markets

BUA Foods Plc steers company away from suspension of sugar sales

BUA Foods Plc issued a disclosure excluding the company from any arrangement to create an artificial shortage of sugar in the country by the decision of two major sugar producers to suspend sales.

According to the notice, the company’s disclosure follows a series of calls from customers seeking information about the company’s decision to suspend sugar sales, such as its competitors in the market, Dangote Sugar and Flour Mills.

The notice read: ‘We have been inundated with calls from our customers that Dangote Sugar and Flour Mills have both suspended sugar sales, inquiring whether BUA will follow through. We would like to reassure our customers that BUA is not joining the suspension of sugar sales”.

He further explained that while Flourmills Plc’s decision resulted from the government’s decision to deny its raw sugar allocation for 2022, the reason for Dangote Sugar’s decision was unknown.

However, the company has made it clear that it does not intend to participate in the suspension of sugar sales or raise prices by Ramadan (a peak sugar demand period) as d others have done.

The company said: “In our view, this shutdown may be intended to create scarcity, force prices to rise artificially, profit even more and blackmail the government into reconsidering the denial of allocation to Flour Mills due to compliance issues.

BUA Foods Plc expressed the belief “that the government should not be blackmailed into reversing a decision based on compliance and that the process should be allowed to take its normal course”.

Highlighting the company’s capacity, the notice says BUA Foods has enough between its sugar refineries in Lagos and Port Harcourt, representing 1.5 million metric tonnes to meet around 90% of the capacity of local demand in the country, while promising to stop all sugar exports. in order to respond effectively to local demand.

In addition to this, the Port Harcourt operation “stands always ready to supplement the supply of sugar in the event of a shortage, as we have done in the past in similar situations in 2020 and 2021”, it said. he declares.

While advising customers against panic buying, he cautioned dealers against holding stock and continuing to sell at the same price as there is enough to sustain the market until after Ramadan begins. in six weeks.

In conclusion, the company warned that its customers refrain from selling at above-market rates or intentionally withholding merchandise to create a shortage, as any customer found guilty will be immediately removed from the reseller list.