Maldives slashes rates of staple food, oil products

Sacks of flour being carried out of STO's warehouse for staple foods. FILE PHOTO/MIHAARU

Sacks of flour being carried out of STO’s warehouse for staple foods. FILE PHOTO/MIHAARU

State Trading Organisation (STO) has decided to cut the rates of staple food, petrol and diesel coming Sunday onwards.

STO’s Managing Director Ahmed Shaheer told reporters on Thursday that the company decided to lower the rates of oil products and staple foods, which are rice, sugar and flour, as the government has eased provision of funds for the importation of these goods.

According to the new rates, sacks of sugar and rice will be sold for MVR 60 each which is a 15 percent drop from the current rate, while MVR 35 is to be slashed from the price of a sack of flour, which is a 12 percent decrease.

Meanwhile, STO is to decrease the rates of petrol and diesel by 20 laari (MVR 0.20) and 10 laari (MVR 0.10) respectively.

STO's managing director and CFO speak to reporters about the new rates of staple food and oil products. PHOTO: HUSSAIN WAHEED/MIHAARU

STO’s managing director and CFO speak to reporters about the new rates of staple food and oil products. PHOTO: HUSSAIN WAHEED/MIHAARU

While STO has decided to lower the rates of staple foods from next week, the Ministry of Economic Affairs is yet to announce any changes to the control rates.

The rates of staple food had increased significantly since the government revised its policy on staple food subsidy to limit it to just the needy last year October.

STO’s MD Shaheer proclaimed that the company has been working since to determine ways to lower the rates of staple food for the public again. He assured that with the new changes to staple food prices, expatriate workers can also purchase the products at the same rates as locals.

STO noted that while the company has lowered the prices of oil products, its rates are slightly inclining in the global market. The company said the new rates are expected to be maintained for around two years.

Meanwhile, the rates of staple foods are maintained on the international market as well, according to STO.

1 Comment on "Maldives slashes rates of staple food, oil products"

  1. Expats buy USD on the black market and pay 3% as remittance tax when they send money to their families! Does it make sense that they benefit from subsidies on food/oil and get air free of charge?

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