Government Acts on Vegetable Prices, Set to Drop by 30%

In an urgent response to soaring prices, the government has announced a significant measure to alleviate the financial strain on consumers. Starting with the next shipments, prices for frozen and canned vegetables are expected to drop by between 10% and 30%. This came after a staggering price increase of 18.6% for frozen vegetables in 2024, leaving many households struggling to cope with the rising cost of living.

The move to cap profit margins on these essential groceries is part of a broader strategy aimed at protecting the purchasing power of consumers, particularly those from the most vulnerable backgrounds.

The Ministry of Commerce has now included packaged frozen vegetables and canned goods in its list of price-controlled products.

With the implementation of this new regulation, consumers can look forward to a welcome relief.

According to forecasts from the Ministry, prices for packaged frozen vegetables could see reductions of between 20% and 30%, while prices for canned vegetables might decrease by 10% to 25%.

This anticipated drop will offer a lifeline to families grappling with relentless inflation.

This decisive action followed a thorough analysis by the Ministry of Commerce, which revealed troubling price hikes: a worrying 18.6% increase for frozen vegetables and a rise of 3.4% for canned goods in the past year.

The government’s objective is clear: to prevent any further inflationary spiral and stabilise the market for the benefit of consumers.

To combat what it considers excessive price increases, the government has revised existing regulations by introducing these two categories into the “Maximum Mark-Up Mechanism.”

This scheme now imposes limits on the profit margins that retailers and distributors can apply.

Specifically, margins will now be capped between 25% and 30% in Mauritius and between 5% and 8% in Rodrigues, where the economic landscape is more precarious and demands closer scrutiny.

Minister of Commerce, Michael Sik Yuen, explained that extensive analyses—including data collected from importers—revealed inflated margins on certain products.

He stated, “The file was submitted to the Cabinet, which endorsed the proposed ‘Maximum Mark-Up’ to regulate these margins.”

Sik Yuen emphasised that this measure marks just the beginning of a wider plan to stabilise prices of essential goods.

“More steps will follow,” he assured, while also noting that price fluctuations remain tied to exchange rates.

“If the dollar remains stable, we can maintain a degree of price predictability,” he added.

The amendment to the Consumer Protection (Consumer Goods) (Maximum Mark-Up) Regulations 1998, approved by the Cabinet, underscores a political commitment to combat the volatility of essential product prices.

The Ministry of Commerce further asserts that this decision is the result of consultations with industry stakeholders and is part of a strategic approach to regulate the market against the backdrop of fluctuating import and distribution costs.

This intervention is not only a policy manoeuvre; it is a crucial response to a crisis affecting every household, representing a collective effort to restore some sense of equilibrium in a time of profound economic uncertainty.

Source: Defi Media