Cement suppliers in Tabora region have been warned not to use the open market and the presence of shortage of the product to oppress easily targeted people by raising prices with the aim of making huge profit.
The statement was issued yesterday by the Tabora Regional Commissioner Dr. Philemon Sengati during a visit to the shops of large and small cement retailers to observe the state of cement supply.
He said suppliers are important stakeholders in cooperating with the Government in development activities and should ensure that cement is sold at a cheaper price that does not harm the people and makes them feel proud of their Government.
In terms of the open market theory, as products decrease in the market, prices go up… I urge cement traders not to use the environment of cement scarcity to make ‘super profit’ that oppress the people, “he stressed.
In addition, the Governor also warned the cement suppliers of retail stores who sell cement for 23,000 / = to 30,000 / = shillings to stop immediately and added that the Government will take action against those who defy it.
He stated it impossible for them to buy at the rate of 19,000 shillings / = and want to sell at the rate of 23,000 shillings / = where they add four thousand shillings.
Dr. Sengati stated the rate is higher compared to the wholesalers who earn a profit of 200 shillings per bag and the cost of transporting goods from factories is higher compared to them here in Tabora region.
“We have found that retailers are selling cement for 23,000 shillings / = to 30,000 / = while the goods are taken here in Tabora and it does not cost much to transport goods… this act intends to make more money by oppressing the vulnerable… the government does not agree to it and will take measures towards it” He said
Dr. Sengati said business influencers should be patriotic joining together with the vision and perspective of the Fifth Phase Government which wants quality and better lives for the people.
The owner of Vimajo and Sons Company who is one of the biggest cement suppliers in the region Victor Chami told the district commissioner that he is selling a 50kg bag for 19,000 shillings after a shortage of cement from 18,500 shillings before the problem.
He stated cement is scarce and sometimes they have to purchase it from their fellow suppliers who are saving theirs and that is why they are forced to add a little more.
The trader further illustrated that they have now decided to purchase Camel cement after what they were initially buying in bulk in Tabora Region from Dangote was no longer available.
He stated they buy the cement at a cost of 13, 340 / = shillings in the factory in Dar es Salaam factory and the cost of transport is 5,000 / = and the unloading laborers pay them 100 / = shillings and the rest is their profit.
Chami said due to high demand of cement in the country because of the large projects being built by the Government and the needs of the people it is better for the Government to crack down on cement producers to increase production and stop exporting.
He stated once the government completes its projects, suppliers should be allowed to export out of Tanzania
Chami expressed to the Tabora Regional Commissioner that he had heard the people’s crying that he would sell cement at the original price of 18,500 shillings / = as it was before the cement ran out in the region.
He urged his fellow suppliers to see the possibility of reducing them so that the public would not be affected.