Flour Mills of Nigeria Plc said on Monday it had not suspended sugar sales as rival BUA Foods Plc claimed.
BUA Foods had in an infomercial on Monday said Flour Mills had suspended sugar sales because the 2022 raw sugar allocation was denied by the government.
He also accused Dangote Sugar of halting sales of the product in an effort to create a shortage and drive up prices.
BUA Foods said: ‘We have been inundated with calls from our customers that Dangote Sugar and Flour Mills have both suspended sugar sales, asking if BUA will follow through. We would like to reassure our customers that BUA is not joining the suspension of sugar sales.
“While the suspension of sugar sales by Flour Mills may be understandable because the 2022 raw sugar allocation was denied by the government due to compliance issues, we do not understand why Dangote joined.
“In our view, this shutdown may be intended to create a shortage, to force prices to rise artificially, to profit even more and to blackmail the government into reconsidering the denial of an allotment to Flour Mills due to compliance issues.”
BUA Foods said the government should not be blackmailed into reversing a decision based on compliance and the process should be allowed to take its normal course.
The company said it was ready to stop all sugar exports to meet the needs of local people if needed. He warned that any distributor found guilty of hoarding the product would be removed from the list with immediate effect.
Contacted on Monday, Flour Mills of Nigeria’s corporate communications manager, Mr Samuel Iboroma, told The PUNCH that it was untrue that the company had suspended sugar sales.
He said this could be confirmed by the company’s dealers, adding that the National Sugar Development Board would hold a press conference on Wednesday to address the matter.
A Dangote Group spokesperson said the company would speak to the matter on Tuesday.
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