Construction Material Prices Up 40%, Sales Down 30% Across Mauritius

The ongoing increase in construction material prices is slowing activity and reducing sales. Despite the trend, Hemraz Ramphul, owner of H. Ramphul Hardware, said prices continue to climb each month. “Freight costs and exchange rate fluctuations directly impact prices,” he explained.

This price hike has affected sales significantly. “Demand has dropped by about 40%. High prices discourage customers,” Ramphul added.

Other hardware stores report similar issues. “Prices haven’t fallen. Even small items now cost more,” a hardware retailer stated.

Anil Rambarun, sales director at Eastern Stone Crusher and Eastern Mix, confirms the upward trend.

“Recently, prices have increased again. It’s a widespread issue. Business is slow, and large projects are rare. The next two years will be tough,” he warned.

In Port-Louis, at Quincaillerie Populaire, sales have fallen by 30 to 40% since the start of the year.

“We’re also facing delays in currency exchange. It takes twenty days to get USD 5,000, which means the longer we wait, the more expensive imported goods become,” explained the store representative.

The store also reported shortages of some materials due to difficulties in obtaining foreign currency needed for raw materials.

In Petite-Rivière, a hardware store noted that prices of some materials have temporarily stabilized, but rising freight costs are suggesting new increases could happen within one to two months.

Declining Sales and Promotions to Attract Customers

Retailers are experiencing a general decline in sales. Parlen Rengen, owner of Royal Store in Plaine-Magnien, reports a 30% drop.

He attributed this to rising food prices, higher costs for other expenses like declarations, and reductions in social benefits such as CSG allowances.

Prakash Permala, another store owner, shares similar concerns. “Sales have fallen because Mauritians’ purchasing power has weakened. We also face competition from street vendors. The upcoming VAT changes worry us—starting October 1, 2025, the mandatory VAT registration threshold will drop from Rs 6 million to Rs 3 million in annual turnover, which could increase our costs.”

Parlen Rengen added that activity slowed after the recent budget. “Suppliers have plenty of stock but are receiving fewer orders. As a result, prices are stable or even decreasing through promotions to clear inventory,” he explained.

Some businesses, however, are managing to stay afloat. Rajah Bhageerutty, director of Bhageerutty Commercial Centre, noted that customers are still buying.

“Prices for Smart TVs have dropped, and promotions are ongoing. Raksha Bandhan is expected to boost spending, along with the launch of new appliances,” he concluded.

Source: Defi Media