The government has given the green light for the setting up of a new flour mill, heralding an end to the monopoly held by Les Moulins de la Concorde (LMLC). A prominent group is already said to have started negotiations with the Trade and Industry Ministry and is expected to submit a project outline by next month.
At the ministry, and the State Trading Corporation, officials believe the way is now clear for a second operator in this vital sector. The LMLC management recently came under fire from Minister Showkutally Soodhun, who said the firm had not helped the country during times of shortage of flour on the world market.
While the world was facing a shortage of flour and wheat, “one would have expected the LMLC to come forward to help”, he said.
“But that was not the case, despite the fact that the STC continues to buy flour from LMLC at higher prices. The government does not wish to see workers lose their jobs.”
Mr Soodhun said the STC had to turn to a foreign supplier in order to get a competitive price for Mauritian consumers. “The Turkish firm, Erisler, will be supplying flour to Mauritius for the next six months at $480 per ton,” he said.
“The LMLC is supplying at $503 per ton. It is a pity that this company is accumulating profits for its shareholders to the detriment of local consumers.” Mr Soodhun was also highly critical of Opposition Leader Paul Berenger.
“He is in no position to tell us what to do”, said Mr Soodhun. “He is proposing that the STC should negotiate hedging with the LMLC for the next five years, when we are getting better quality flour at a cheaper price from Turkey.
“What is the logic behind this? Of course the arrival of another operator in this sector is sure to benefit consumers, so long as they don’t join hands and form a cartel behind consumers’ back,” said Mr Soodhun.
By Rakshita Ramessur