Artificial or not, shortage and price increase are waiting for us! The reasons vary for these two basic commodities. The STC launched an international tender on Wednesday and the Ministry of Commerce held a round table with 7 major importers of milk.
International tender from the STC
The rationing of edible oil is due to the fallout of the war in Ukraine. Egypt is no longer producing for export. The cause is the lack of basic products such as sunflower which it gets from Ukraine, the most important producer which ensures about 50% of the world trade of sunflower oil. Other markets are being studied as announced by the Minister of Commerce. The State Trading Corporation launched a tender exercise on Wednesday, 23 March to potential future importers, for a supply of 500 metric tons of edible oil to cover the period from May to July. Importers will be asked to supply the country with soybean, sunflower and any oil that falls under the ‘Blended Cooking Oil’ category. The deadline for the tender is April 6. The STC is in the midst of studying the world market for better edible oil offers following the Russian-Ukrainian war and its effect on world trade.
A rise in the price of milk is to be expected
After oil, milk, then other commodities. The Minister of Commerce, Soodesh Callichurn, had announced on Monday, March 21, to conduct an inventory of commodity stocks. At the meeting on Wednesday, the officials of the said ministry met with the 7 major importers in Mauritius that cover 90% of the market. Milk is not directly linked to the fallout of the war in Ukraine, so there is no shortage to be expected, since milk is imported from New Zealand. But there will be an increase in the local market. Rising freight prices, fluctuating milk powder prices due to rising raw material prices faced by farmers, scarcer and more expensive labor and, also the effects of climate change. But Milk Industry is indirectly impacted, in New Zealand, farmers and livestock breeders are directly affected by the fallout from the war in Ukraine from where they import corn, soybeans and fertilizers.
