Rice Ration: STC Revives Long-Term Agreements with India

Title: Rice Ration: STC Revives Long-Term Agreements with India

Date: November 4, 2025 - 10:13 AM

The State Trading Corporation (STC) is planning to re-establish long-term agreements with India for the importation of approximately 33,000 tons of rice ration annually. This strategic move aims to support its subsidized food program and ensure competitive pricing.

Historically, India was the primary source for rice imports through long-term bilateral agreements. However, in 2023, India suspended its non-basmati rice exports to stabilize its domestic market, forcing Mauritius to turn to Pakistan, which gained a significant foothold in the local market via open tenders. Although some Indian rice deliveries continued under government agreements, they were insufficient to meet the country's annual needs.

Now, with the lifting of the Indian ban, STC aims to restore this traditional relationship. The national consumption is around 32,000 tons of non-basmati white rice each year, which is distributed at highly subsidized prices as part of a social policy to ensure food security. For instance, a 2.5 kg packet of rice ration is sold for Rs 28, while the same product costs about Rs 56 on the open market.

The decision to source rice again from India has elicited mixed reactions among experts and industry stakeholders. Suttyhudeo Tengur, president of the Association for the Protection of the Environment and Consumers (APEC), views it as a short-term economic security measure, but stresses the need for a broader strategy. "If well-regulated, this initiative could benefit Mauritian consumers in terms of price and availability. However, vigilance regarding quality and trade dependency is crucial," he noted.

He argues that while the subsidy system is vital for protecting consumers from price hikes, it is not sustainable long-term and heavily burdens public finances. "To ensure genuine food security, Mauritius should diversify its import sources, further support local production, and promote sustainable agricultural practices," he recommends. Such an approach would help reduce external dependence while stabilizing prices and enhancing national food autonomy.

The APEC president also warns against excessive reliance on a single supplier, even though India currently offers some stability. "The ongoing military instability between Pakistan and Afghanistan undermines the reliability of Pakistani exports. However, relying solely on India also carries geopolitical risks. Mauritius should adopt a balanced strategy, diversifying its imports to ensure a continuous food supply," he insisted.

On the private importers' side, the government's decision is generally welcomed, albeit without drastically altering the market dynamics. Yusuf Sambon, director of Lolo Hypermarket and a rice importer, believes this choice presents an advantage. "With a greater selection of suppliers, the government can secure better value for money," he stated. However, for private importers like him, it does not change much. "We already have strong ties with our suppliers, whether in India or Pakistan, and we import the best basmati rice at very competitive prices," he affirmed.

By the Numbers: Rice in Mauritius

33,000 tons: Amount of rice ration Mauritius aims to import from India each year.
32,000 tons: Annual needs for non-basmati white rice.
Importing countries: Pakistan and India.

Price Comparison

Rice Ration: Rs 28 (subsidized price) for a 2.5 kg packet.
Basmati Rice (5 kg): Ranges from Rs 295 to Rs 425 (depending on brand).
Basmati Rice (20 kg): Ranges from Rs 1,250 to Rs 1,550.

Imported Rice Value in Mauritius

2020: Rs 2.2 billion
2021: Rs 1.9 billion
2022: Rs 2.2 billion
2023: Rs 2.8 billion
2024: Rs 3.3 billion
First half of 2025: Rs 1.7 billion

Volume of Rice Imported

2020: 65,000 tons
2021: 55,000 tons
2022: 63,000 tons
2023: 62,000 tons
2024: 75,000 tons
First half of 2025: 44,000 tons