Government reaffirmed its commitment to bring relief to the population by ensuring affordability of basic commodities and curbing inflationary pressures in the light of global price hikes, stated the Deputy Prime Minister (DPM), Mr Paul Raymond Bérenger, today, during a press conference held in Port-Louis.
The Minister of Commerce and Consumer Protection, Mr Michaël Tzoun Sao Yeung Sik Yuen; Minister of Labour and Industrial Relations, Mr Muhammad Reza Cassam Uteem; Minister of Industry, SME and Cooperatives, Mr Sayed Muhammad Aadil Ameer Meea; and Junior Minister of Finance, Mr Dhaneshwar Damry, who are also members of the Inter-Ministerial Committee on Price Stabilisation Fund (PSF) were present.
DPM Bérenger recalled the establishment of a Rs 10 billion fund aimed at cushioning the impact of price fluctuations on essential goods. He pointed out that the fund was launched with an initial injection of Rs 2 billion, with provisions for an annual allocation of Rs 2 billion over the next five financial years, bringing the total to Rs 10 billion.
He also shed light on the recommendations of the report of the Inter-Ministerial Committee that was set up to look into the strategy to be adopted for the sustainable utilisation of the PSF. These recommendations include:maintaining the prices for bread at Rs 2.60 and inducing subsidies in the prices of five basic commodities namely milk powder, edible oil, infant milk, baby diapers and processed cheese to alleviate the impact of increasing prices.
Follow us on WhatsApp | LinkedIn for the latest headlines
The prices of milk powder will thus be subsidised by Rs 50 per kilogram; edible oil by Rs 15 per litre; infant milk by Rs 55 per pack of 900 grams; baby diapers by Rs 25 per pack of 50 diapers; and processed cheese by Rs 10 per pack of 250 grams. These prices will be effective as from 26 August 2025.
Mr Bérenger pointed out that maintaining the prices of bread at Rs 2.60 will necessitate a subsidy amounting to Rs 450 million per year and as for the five basic commodities, a subsidy of Rs 400 million will be required for a period of six months. These subsidies will be applied on a temporary basis and the situation will be closely monitored as the country still faces the risk of a credit rating downgrade by Moody's, despite ongoing efforts of the Government to stabilise the economy and decrease public debts, he added.
For his part, Minister Sik Yuen highlighted that Government remains attentive to the needs and concerns of the population and is taking necessary measures to provide relief amid rising prices.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He recalled that in March this year, Government put a maximum mark up on certain commodities including frozen packed vegetables, canned vegetables, butter and margarine, luncheon meat, tuna and salt as well as the removal of Value Added Tax on infant food, canned vegetables, and frozen packed vegetables.
He is hopeful that the subsidies provided on the five additional essential commodities will help reduce the burden on households, especially lower income ones. The possibility of extending subsidies to other products will also be considered in the near future depending on market conditions, reassured Minister Sik Yuen.
