From Mustapha Adamu, Kano
Days after announcing the reduction of ex-factory price of cement, BUA Group has silently increased prices of foods, particularly a bag of flour and a carton of pasta, investigation has revealed.
PEOPLES DAILY reports that the management of one of the giant cement coy in the country had on October 1 announced the reduction of ex-factory price of the product to N3,500 per bag.
But the announcement was greeted by public outrage as dealers were battling to enlighten the customers that the reduction in price affects only companies that supply the commodity directly from the factory.
However, investigation by this newspaper had revealed that BUA Foods had silently increased prices of its flour and pasta products.
Our reporter, who went round some shops at the popular Singer Market in Kano state, the biggest grocery market in Northern Nigeria, observed that price of a bag of flour and a carton of spaghetti had increased by N2,000 and at least N1000 respectively.
Checks by this newspaper had shown that while the price of spaghetti was sold at N8,100 a carton and a bag of flour at N32,500, the commodities are now being sold at 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 as he was not authorized to speak, they observed the increase in the prices 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 also 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.
“We have just received the increased from them this week. They normally communicate to use via phone. They will just send us messages if there is any development.
“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 the Kano city.
A grocery shop operator, Mustapha at Karkasara are of Tarauni Local Government area, informed our reporter that he sells a bag of 50kg sugar at N49,000 after he supplied it at N47,500 from the dealers.
Another shop operator, Ibrahim Musa in Fagge Local Government said he had observed increment in price of sugar, flour and IRS spaghetti.
