"We Don't Have a Choice": After Skyrocketing Prices, Indomie Reduces Costs of Its Noodles

• The manufacturer of Indomie Instant Noodles has explained why it has decided to reduce the prices of its products
• The company clarified that the initial hike in prices a few months ago was spurred by increased operational cost
• It, however, revealed that it decided to review the prices downwards as economic challenges were beginning to stabilise

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Dufil Prima Foods Ltd, the maker of Indomie Instant Noodles, has provided insight into the decrease in the prices of its products following a sudden increase a few months back.

The company attributed the recent price drop to the significant improvement in the country's economy rather than reduced patronage.

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Indomie gives reason for reduced prices

Mr. Temitope Ashiwaju, the company's Group Corporate Communications and Event Manager, clarified this in an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos.

Ashiwaju emphasised the importance of providing clarification to rectify any misinformation regarding the recent price adjustment for the product.

He mentioned that the company was also impacted by economic realities, which led to increased prices of Indomie noodles in the past.

He said:

“For a listening company such as ours, we felt at some point in time, against our operational cost to adjust when things started to improve.

“We are not here to rip people’s out. Of course, if you starve people and make the products out of reach, it will also affect us.

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“Reduction in prices came when the operational cost started to go down.

“We don’t have a choice than to adjust to realities of times and other indices as they improve because serving people are at the centre of our core value.

“The moment we realised that things started to stabilise, we all hope and pray the economy gets better, as a responsible company, we felt it was time to do a further price reduction.”

Ashiwaju highlighted that the company has been operating in Nigeria for over two decades, with factories and installations across the country.

Reacting to the price reduction, Chinyere Ugochi, a resident in Lagos, told Legit.ng that the prices are yet to return to the pre-February rate.

She said:

"Even though there is a significant reduction in the prices of Indomie noodles, it is still higher than what was obtainable in February before their prices skyrocketed.

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"The high prices of February had forced many households to cease buying noodles and go for alternatives. The price reduction is welcomed, but it is not enough."

It would be recalled that Legit.ng earlier reported that data released by the National Bureau of Statistics (NBS) showed that food inflation for March 2024 stood at 40.01%, an increase from the February figure of 30.7%.

Survey of current prices

The price of Indomie noodles experienced a rapid increase within a short period, leading to a decrease in demand.

However, according to a recent market survey conducted by NAN, a carton of the smallest Indomie standard pack size was sold for between N10,500 and N11,500.

However, the same size carton is currently sold for between N7,400 and N8,000. Similarly, a carton of the Super Pack was previously sold for between N17,800 and N18,700, while a carton of the Hungry Man size was sold for between N16,800 and N17,500.

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Presently, a carton of the Super Pack is sold for between N12,000 and N13,000, and a carton of the Hungry Man size is sold for between N11,500 and N12,500.

Six cheap foods now unaffordable to Nigerians

In related news, Legit.ng had reported that some formerly cheap food items are no longer affordable to average Nigerian homes.

According to a market survey undertaken by Legit.ng, food product prices have doubled in recent months.

The continuous rise in the costs of these staple foods, alongside other commodities, has reduced the buying capacity of Nigerians, as many find it challenging to meet their daily dietary needs.

Source: Legit.ng