Prices cut on 64 basic commodities

Minister of Industry and Commerce Showkutally Soodhun,  warned shopkeepers and supermarkets yesterday that they have to affix the new prices within 24 hours from the time the announcement is officially published in the press.

The foodstuffs include beans, rice, powdered milk, jam, pasta (macaroni and spaghetti), canned fish, cheese, juice, mushroom, corn, honey, mayonnaise, paste (garlic, ginger), spices, wheat with honey, cereal, chicken sausages, oil, cacao and frozen breaded chicken snacks.

“We are reducing the price of 64 products. The importers have agreed with me that the new prices will be effective as from tomorrow (Wednesday). We are giving 24 hours to shops and supermarkets to implement this action.

“There will be strict control in these places across the country. Those who do not abide will have to assume their responsibility,” said Mr Soodhun flanked by some importers, including Tiremaster, A.A.R. Osman, Shabs Trading, Edendale Ltd, Chue Wing, State Trading Corporation (STC), P & P International Co. Ltd and Innodis.

Mr Soodhun said that his team has not been able to work out the average reduction in terms of percentage, but pointed out there is a commodity that is being priced 28% lower than its former price. In fact, pure Canola Oil will be sold at Rs54.50 a litre instead of Rs77. He made it clear the importers are acting voluntarily.

The government, he added, is doing its best to protect consumers, particularly those from the low and middle income groups. Mr Soodhun said that this year the government is spending Rs1.2 billion on subsidies on basic commodities such as rice, flour and gas.

But he denounced some traders who abusing on the subsidies on one hand and are claiming high prices from the consumers on the other. He pointed out that the subsidy on flour also benefits the bakers and sellers of dholl puri, chili cakes and other Indian cakes. However, these people are exaggerating “by increasing their prices by 50%”

The minister promised that by the end of the week, the list will be extended to 75 items.

PRICES: December 2009-January 2011

• 1 packet (500 grams) of cheese has increased by Rs9 to Rs76
• 1 litre of oil by Rs12 to Rs57
• 1 kg of powdered milk has gone up by by Rs50 to Rs185
• 1 packet (1lb) of tea by Rs9 to Rs88.00
• 1lb of sugar by Rs4.00 to Rs18
• 1lb of black lentils by Rs7 to Rs28
• 1 litre of concentrated fruit juice by Rs16 to Rs119