Commerce Ministry: Considering 2 Key Imports to Fight Inflation

The Ministry of Commerce is exploring the possibility of importing several essential consumer goods, including edible oils and canned peeled tomatoes, as part of its strategy to address the escalating prices affecting households across the nation. This initiative is in response to rampant inflation that has been putting a significant strain on family budgets.

Under the guidance of the State Trading Corporation (STC), the Ministry is planning a new wave of imports aimed at stabilizing the market and curbing price increases.

Specifically, the focus is on sourcing edible oils, likely from Egypt or Turkey, as well as canned tomatoes.

According to Defi Media insider information, these subsidized products could start appearing on store shelves as early as the beginning of next year, and they are expected to be offered at competitive prices.

However, the Ministry has been cautious in revealing the finer details of this plan.

Defi Media source close to the discussions stated: “The aim is to stimulate competition to trigger a reduction in prices. But this will be implemented gradually, following a thorough study.”

The government’s clear objective is to protect consumers’ purchasing power while pressing major retailers to reconsider their pricing margins, which are often perceived as excessive.

The frustration within the Ministry regarding the exploitative practices of some distributors is evident, especially since profit margins are reportedly “high.”

Michael Sik Yuen, the Minister of Commerce, expressed understanding of the operational costs faced by retailers but emphasized the importance of empathy towards consumers who are already struggling with rising costs.

He remarked, “We understand that merchants have expenses, but they must also put themselves in the shoes of consumers who are feeling the pinch of high prices.”

Sik Yuen called for “smart” consumption and encouraged exploration of alternatives available in the market.

Despite the ambitious announcements, the project remains in its early stages.

This is not the first time such measures have been proposed; in 2022, under Prime Minister Pravind Jugnauth’s leadership, the STC launched a similar initiative offering the Smatch line of basic products at regulated prices to combat soaring food costs.

This lineup included items like powdered milk (1 kg), edible oil (1 liter), rice (5 kg), and dried grains such as white beans, red beans, and dholl gram in 500-gram packages.

Prices for these products were set, creating a competitive environment against established brands, which resulted in success and attracted consumers with their appealing prices.

Additionally, the Ministry has highlighted the need to remain “reasonable” regarding the pricing of frozen chicken, another staple in family meals, issuing a clear warning against price gouging.

In another significant move, the government is contemplating a reduction in the value-added tax (VAT) on a variety of consumer goods.

A meeting is scheduled for later this week between representatives from the Ministry of Commerce and the Ministry of Finance to discuss this possibility.

Source: Defi Media