Government Preparing to Subsidize New Consumer Products in 2025

As inflation continues to rise, the government is taking steps to alleviate the financial pressure on consumers. Starting in 2025, plans are in place to import essential subsidized products through the State Trading Corporation (STC). This initiative aims to protect household purchasing power and encourage major retailers to reassess their excessive profit margins.

Currently in its early stages, this ambitious project is responding to two pressing issues: the urgent need to safeguard the purchasing power of households significantly affected by escalating prices and the necessity of compelling major retail players to rethink their often criticized pricing policies.

In the face of surging inflation that is straining household budgets, the government is poised to take decisive action.

According to Defi Media sources, the STC is considering the importation of a new range of essential goods, set to launch early next year. This move is part of a broader strategy to combat rising prices.

Despite attempts by Le Défi Quotidien to obtain detailed information about the specific products to be imported, insiders indicate that these state-subsidized items will be offered at competitive prices.

The objective is to ease consumer burdens while simultaneously pressuring large retailers to reevaluate their perceived excessive margins.

In 2022, under the leadership of former PM Pravind Jugnauth, the STC took unprecedented action by directly intervening in the retail market to mitigate the impact of soaring prices on households.

The initiative aimed to ensure the availability of essential staple goods while providing accessible pricing.

As a result, a line of basic food products under the brand Smatch was introduced in the country’s supermarkets.

This included essential items such as powdered milk (1 kg), cooking oil (1 litre), rice (5 kg), and various dry beans like white beans, red beans, and dholl gram packaged in 500-gram bags.

The prices of these products were fixed with the intention of creating competitive pressure on established brands.

This initiative proved successful, as consumers quickly adopted the affordable Smatch products, making it a political and commercial triumph.

Currently, the proposed project is still under study. Commerce Minister Michael Sik Yuen confirmed the initiative’s existence, emphasizing that it is still “in its early stages.”

He indicated that discussions will soon begin to identify which products will be included and under what conditions the subsidies will be applied.

“This is a meticulous process. We want to not only meet consumer expectations but also promote healthy competition within the retail sector.

The goal is clear: to make the market more competitive for the benefit of consumers,” he explained.

During this festive season, Minister Sik Yuen also addressed consumers directly.

He encouraged them to explore alternatives and make wise purchasing decisions.

“I ask everyone to exercise discernment in their spending. It’s vital to adopt responsible consumption habits and consider other brands that often offer better quality and more affordable prices,” he advised.

The government’s careful consideration of various policies is essential for making informed decisions that impact the public.

Source: Defi Media