The Federal Government has pledged to maintain equilibrium sugar prices across the country in light of the surge in the price of the commodity over the past months.
Dr. Doris Uzoka-Anite, the Minister of Industry, Trade and Investment, made this pledge after meeting with the leading sugar producers, a statement by Tolu Moyan, the minister’s special assistant on media, revealed.
Nairametrics had earlier reported that the price of a ton of sugar rose 44.2% from N579,400 in July 2022 to N835,400 in July 2023. Similarly, Dangote Sugar Plc increased the net selling price of its sugar by 33% in 2023.
The minister visited Dangote Sugar Refinery Plc, BUA Sugar Refinery Ltd., Flour Mills Ltd., Bestaf Ltd., Golden Sugar Company, and the Coca-Cola Hellenic Bottling Company (CHBN).
Following the meeting with Uzoka-Anite, the sugar producers assured the minister of their commitment to maintaining sugar price stability in the country.
- “Rest assured, there will be no increase in sugar prices, especially during Ramadan. The sugar refineries’ pledge is a clear demonstration of their alignment with the government’s efforts to bolster the agricultural sector and food security, key components of President Tinubu’s transformative agenda.
- “The sugar industry’s commitment to price stability during Ramadan exemplifies a synergistic relationship between the government and the private sector, working hand in hand to achieve common goals.
- “I have witnessed their dedication to high-quality sugar production, and while that is commendable, our collective goal demands a higher standard,” Uzoka-Anite stated.
What you should know
- On several occasions in the last year, 2023, Nairametrics reported a significant increase in the price of sugar across the country.
- In March 2023, Nairametrics reported that Dangote Sugar Plc increased the net selling price of its sugar by 33% to offset currency adjustment and inflation pressure.
- Also, Nairametrics in September 2023, reported that the price of sugar hit N835,400 per ton for the week ending July 28, 2023, a 44.2% increase when compared to N579,400 per ton for the week ending July 29, 2022, according to the National Sugar Development Council.
- The Nairametrics report on the rise of sugar in September 2023 attributed the increase in sugar prices to the global shortage of sugar supply brought about by drought that hit India, one of the commodity’s main producers and exporters, in 2023.
- In addition to the drought that affected India’s optimum production of sugar in 2023, forex scarcity and devaluation of the Naira also contributed to sugar imports.
- The sugar refineries in Nigeria focus on importing raw sugar into the country, where it is refined and sold.
- The National Sugar Development Council has urged the leading sugar producers in the country, such as Dangote Sugar Plc and BUA, to invest more in sugar production and use local extract for their refineries.
- Nigeria imports about 98% of its sugar needs.
