Rs 2 Billion Stabilization Fund Coming Up to Target Food Price Reduction

The government is close to launching a Price Stabilization Fund this month to help reduce food prices. The fund, with an initial budget of Rs 2 billion for the 2025/2026 fiscal year, aims to protect consumers from rising international prices.

According to Defi Media‘s sources say a key meeting is scheduled for 5th Tuesday between the Ministry of Commerce and Consumer Protection and the Ministry of Finance to finalize details.

Minister Michael Sik Yuen confirmed that preparations are almost complete and plans to present the proposal to the Cabinet for approval soon.

Once approved, the government will involve stakeholders such as the Mauritius Chamber of Commerce and Industry, importers, and consumer groups.

The fund’s goal is to lessen the impact of global price hikes on essential goods. The government plans to inject Rs 2 billion annually over five years, totaling Rs 10 billion, to buffer fluctuations.

This money will be provided as subsidies to importers, with strict controls to ensure that savings reach consumers.

Targeted products include staple items like powdered milk, cooking oil, sardines, and Basmati rice.

It was also confirmed that prices for certain items could decrease by up to Rs 40. However, the final list of products and the extent of price reductions will depend on the formula adopted.

To ensure transparency and effectiveness, a control system will be implemented to monitor subsidy distribution.

The aim is to guarantee that the financial support results in actual price drops for shoppers. A government insider said, “The ministry is working on a fair and workable formula,” to prevent misuse of funds and maximize benefits for households.

The Tuesday meeting with the Finance Ministry is crucial for final technical and financial approvals.

After that, the proposal will go to the Cabinet for a final decision. Once approved, discussions with importers and consumer groups will refine the rollout.

Amid rising global inflation and its impact on basic goods, the Price Stabilization Fund represents a concrete step by the government to ease pressure on Mauritian households.

By targeting essential products, officials hope to stabilize prices and help preserve the purchasing power of citizens, especially the most vulnerable.

Source: Defi Media