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Dangote Sugar Denies Involvement in Price Fixing, Asserts Strong Participation in NSMP

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Dangote Sugar Refinery PLC (DSR) in a statement made available to MoneyCentral, says it is aware of an online publication claiming that Dangote Sugar Refinery PLC is engaging in price-fixing and is not honestly engaged in any Backward Integration Programme as claimed.

DSR wishes to vehemently refute the allegations and assertions in their entirety as the
false allegations are geared at tarnishing the good name and brand of Dangote Sugar
Refinery Plc 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 ever increased price of
our food items or commodities during the Holy month of Ramadan in the history of our
operations, according to the Group Managing Director, Mr. Ravindra Singhvi.

He also added that the Company is socially responsible and considers price-fixing to be
unethical. Such allegation is highly mischievous and a calculated attempt to smear the
reputation of DSR. DSR can only sadly conclude that the online publication is
mischievous and geared at creating some form of undue advantage to some Industry
players, he said.

He said that the company began its Backward Integration Programme (BIP) with a 10-
year sugar development plan, to produce 1.5 million MT per annum of sugar from
locally grown sugarcane.

The Project commenced with acquisition of large expanse of land in strategic locations such as Taraba State, Adamawa State and Nasarawa State.

To this end, three (3) BIP sugar companies; Dangote Taraba Sugar Limited, Dangote
Adamawa Sugar Limited, Nasarawa Sugar Company Limited were incorporated.

The Company had commenced rehabilitation and expansion of its Sugar Factory at
Numan towards increasing production capacity by 6,000 tons of cane per day (TCD).
Sugarcane planting has also commenced in two other BIP locations.

DSR has a responsibility to the Government, the good people of Nigeria and the Sugar
Industry and all other stakeholders to protect the integrity of the Sugar industry and
wishes to assure its stakeholders as follows: It will do all that is necessary to protect
the integrity of the Sugar Industry, it is not engaged in price fixing and it encourages
healthy competition amongst the players.

DSR highlighted a matter (BUA’s operation of a Sugar refinery in the Free Trade Zone in
Port Harcourt, exporting refined sugar into the Custom territory) which may circumvent
the National Sugar Master Plan’s (NSMP) framework and jeopardize its objectives by taking advantage of the location of its Port-Harcourt Refinery in the Free Trade Zone.

DSR made this notification to the Hon. Minister of Industry, Trade & Investments bona
fide, via its letter to the Minister dated January 28, 2021 asking the Minister to
investigate the matter.

“The Company is aware that BUA and the Ministry of Industry, Trade & Investment are
currently in court and we believe our action is in line with our responsibility as a major
stakeholder to alert the supervising Ministry on activities that would derail the plan of
the Federal Government in its drive to self -sufficiency in Sugar under the NSMP,” Dangote Sugar said

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