The Ministry of Industry, according to The Reporter Newspaper, has instructed cement producers to remove agents from the market network and sell the product directly. The ministry sent ten cement companies a letter asking them to list the names and phone numbers of brokers they had turned down.
The State Minister of Trade, Hassen Mohammed, told a news source that the ministry is working to shorten the commercial chain and that one of the reasons for the chain’s illegal lengthening was agents. He stated that the ministry will take harsh action if cement manufacturers continue to use agents for distribution.
According to State Minister Hassen, cement commerce will operate on a non-interference basis, with wholesalers buying directly from the factories. He claimed that government development organizations and other government programs would be treated differently.
It was also claimed that agents were selling cement to wholesalers at higher prices, resulting in long supply chains and causing the final buyer to pay three times the price when the cement left the factory.
Cement will be classified as a required item by the Ministry of Trade and will be regulated accordingly, barring it from the free market. In addition, a directive was being drafted.
Source: The Reporter Newspaper
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