In a perplexing turn of events, the BUA Group, only days after announcing a significant reduction in the price of cement, has faced scrutiny for raising the prices of its staple food products, including sugar, flour, and spaghetti. This unexpected move has raised questions about the company’s pricing strategies and how they are affecting consumers.
The management of BUA Group made headlines on October 1st by significantly reducing the ex-factory price of cement to a competitive N3,500 per bag. However, a recent investigation by Daily Nigerian has revealed that BUA discreetly increased the prices of its sugar, flour, and pasta products.
The investigation found that the price of a bag of sugar, a bag of flour, and a carton of spaghetti increased by N3,500, N2,000, and at least N1,000, respectively. Previously, sugar was available at N44,000 per bag, spaghetti at N8,100 per carton, and a bag of flour at N32,500. The new prices surged to N47,500, N9,000, and N34,500, respectively.
A dealer of BUA Foods in Kano, who chose to remain anonymous, confirmed that the price hikes occurred immediately after the company’s announcement of cement price reduction. These price increases began just this week and are company-set prices, not retail.
The dealer explained, “We have observed the increase this week. The price of a bag of flour has now gone up to N34,500, as opposed to the N31,000 to N32,000 range last week. About N2,000 has been added to the cost of a bag of flour, and this is the company’s set price.”
The investigation also revealed that prices had already risen at retail outlets in Kano city. Shop owners and customers expressed their discontent with the sudden price spikes, as the cost of living continues to rise.
In response to the report, the BUA Group justified the price increases, noting that their competitors had also taken similar actions. They claimed that, despite these increases, BUA’s food products remained the most affordable in the market.
It remains to be seen how consumers and the market will react to this contradictory pricing strategy by the BUA Group, as the company continues to navigate the challenging economic landscape.
Source: Daily Nigerian
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