The price of some products could fall to a maximum of Rs 15 from Monday, July 12. Prime Minister Pravind Jugnauth announced in Parliament yesterday that the government has decided to subsidize the import of several basic food products to the tune of Rs 500 million to stop a rise in the prices concerned. In doing so, several items will return to their original prices of last January. Among the products affected by a possible price cut are canned goods (pilchards and sardines), canned sweet potatoes, cheese, edible oil, margarine, milk powder and dry grains.
Approximately 243 “brands” are affected by this subsidy, which will last for about six months. The price of some products could drop to a maximum of Rs 15 from July 12. This subsidy will be financed by the government. Addressing Parliament, the head of government said he could not remain insensitive to the fears of the population and the working class in general. “As a caring government, we will not allow the population to suffer”, he said in Parliament. He had to emphasize that the government will always be there to protect the population and consumers against the escalating increase.
The head of government explained why consumer associations, trade unionists and members of the opposition have drawn the government’s attention to the price increases. This is due, he said, to several factors, including the closure of borders, the appreciation of foreign currencies, the increase in the cost of freight. The head of government also announced that the State Trading Corporation (STC) is studying the possibility of importing essential products such as edible oil to stabilize the price on the local market.
To relieve the population, the government has also decided to set up the price observatory to allow consumers to have better visibility on the practices in the various businesses. Thus from Monday, July 12, several 200 food products that will cost less.
The PM also stressed that the world is upset with the rapid spread of the pandemic Covid-19. “There has been significant disruption around the world. In March 2020, when Covid-19 first hit Mauritius. International air travel was almost at a standstill. Air, land, and sea freight were also significantly slowed and many countries around the world had imposed export restrictions. The result was that the global supply chain and the volume of goods were severely affected in the international marketplace. These restrictions also disrupted the cross-border interconnection of labor markets, economies, value chains and supply chains, as well as the dependence of some sectors on cross-mobility,” he explained.
Pravind Jugnauth also said that in April 2020 itself, the government introduced a first price control measure to protect consumers by controlling no less than 22 products, including products such as onions and potatoes, basmati rice, breakfast cereals, butter, babies and diapers, sanitary napkins and legumes, among others. “Thanks to this measure, the situation has stabilized, and it has been possible to protect the purchasing power of the consumer and avoid massive price increases. When later in July 2020, when we came out of the first containment and the situation gradually improved, the price control measure was lifted,” he said.
The Prime Minister also maintained that there are already 27 products that are controlled, of which nine are under the Maximum Price (fixed price), 17 under the Maximum Mark-Up regime, and one under the Maximum Recommended Retail Price regime. These include bread, Basmati rice, milk powder, fertilizer, flour, canned sardines, corned beef, household gas, corned mutton, dual purpose kerosene, face masks, Mogas, Gasoil, hand sanitizers, potatoes, imported fresh fruits, onions, infant milk, pharmaceuticals, red lentils, large peas, dholl gram’, specialized face masks, sanitary pads, sanitary towels.
On the other hand, the Prime Minister pointed out that in order not to penalize importers and distributors of food products, they will benefit from a subsidy of Rs 500 million through the Mauritius Revenue Authority (MRA). Pravind Jugnauth stressed that this assistance will be fully funded by the state.
It should be noted that yesterday’s session in Parliament was devoted to the debate on The Optical Bill which was voted with amendments. The Construction Industry Development Board (amendment) Bill was presented by the Minister of National Infrastructure, Bobby Hurreram. The debates will continue this bill in the next parliamentary session.
