♦ Before Ramadan, the price was N13,000 per bag, but Dangote and one other market competitor wanted the price increased to N30,000 per bag. ♦
Dangote Sugar has been accused of price-fixing by BUA Group.
The competitors have been at loggerheads over market dominance, but the rivalry took a different turn on Thursday.
Dangote Sugar representative had allegedly approached BUA Sugar founder, Abdulsamad Rabiu, to increase the price of sugar during Ramadan last year due to improved demand.
Rabiu was allegedly asked to join their plan to fix the price of sugar.
But BUA turned down the suggestion, choosing to leave its price at the same rate. Before Ramadan, the price was N13,000 per bag, but Dangote and one other market competitor wanted the price increased to N30,000 per bag.
Dangote was said to have Petitioned the Trade Ministry To Revoke BUA’s License
According to a report by The Capital, Rabiu was reportedly pressured into fixing the sugar price, but when he resisted, they threatened his sugar operation by petitioning the Trade Ministry.
It was stated that BUA didn’t have the license to sell sugar within the country, as his business approval was only for export.
However, in a response letter to the ministry, Rabiu stated that the company was operating in line with its license.
Dangote responds to claim
Dangote Sugar’s Group Managing Director, Ravindra Singhvi, in a statement to Ripples Nigeria, said the company wasn’t involved in price-fixing. The firm said it doesn’t manipulate price movement in the market.
He said that the allegations were a ploy to negatively impact the image of Dangote Sugar Refinery and Dangote Industries Limited, “DSR does not engage in artificial price manipulation of its products, either during the Holy month of Ramadan or at any other time.
“We have never increased price of our food items or commodities during the Holy month of Ramadan in the history of our operations”, he said, adding that the company considers price-fixing to be unethical.
Story credit: Ripples Nigeria