Consumption: The New List of Subsidized Products is Still Pending

The delay in publishing the second list of subsidized products under the Price Stabilisation Fund is raising concerns among consumer associations and households. Food prices are rising, and low-income families are bearing the brunt. The local economy is experiencing a slowdown as the festive season approaches.

Additional food products were supposed to receive subsidies under the Price Stabilisation Fund since September, but the list of these products is still awaited. Jayen Chellum, the Secretary-General of the Consumers’ Association of Mauritius, finds it absurd that an announcement takes nearly three months to materialize, given that a fund has already been established. "The last time we met with the minister was on September 11. We had already agreed on the list of products that should be subsidized," he states. According to him, the next step was to forward the documentation to the Ministry of Finance, then to an inter-ministerial committee before it could be approved by the Cabinet. "It is unacceptable that this formality takes almost three months while prices continue to rise," Jayen Chellum asserts. He believes that other essential products should already be subsidized, especially with the festive season nearing, during which many Mauritians make significant purchases. "We are calling on the government to present this second list promptly." Jayen Chellum reminds us that in five months, Rs 400 million have already been spent on subsidies. "We now wonder how the remaining Rs 1.6 billion of the Price Stabilisation Fund will be spent in seven months, by June 30, 2026."

Suttyhudeo Tengur, President of the Environmental Protection and Consumer Association (APEC), explains that the delay in publishing the second list of essential products may be attributed to various factors. "It could be due to budgetary adjustments within the Ministry of Finance, discussions with importers to avoid abuse, analyses of international price trends, and the necessary administrative logistics to properly calibrate the subsidies," he says. He believes the government wants to avoid a rushed list that could be too costly or benefit bad actors. "This caution, though frustrating, aims to ensure a credible and sustainable measure," he adds. For his part, Claude Canabady, Secretary of the Consumers’ Eye Association, cannot say what is causing the delay, as he is not in the "inner circle." "Perhaps with the recent issues within the government, the meeting was postponed due to other urgent decisions needing attention. We can only speculate," he remarks.

Consequences of the Delay

Jayen Chellum explains that the country comprises several categories of families. "For those who are well-off, earning more than Rs 50,000 a month, subsidies on food products won’t make much of a difference." In contrast, he continues, for those at the bottom end of the scale, these subsidies provide genuine relief. Thus, this delay creates a certain frustration among these households who are eagerly awaiting a drop in prices for other essential products, especially with the holidays approaching.

Claude Canabady believes that the delay has significant implications, both financially for the most disadvantaged and psychologically for everyone waiting for the new subsidized products. "We can also include the middle class, which is facing tough times as well. There would have been an economic impact, as people would have been more inclined to buy food and possibly consume in other sectors."

Suttyhudeo Tengur notes that this delay keeps pressure on households already grappling with widespread price increases. "Without subsidies, low-income families cut back on essential spending, which hampers consumption," he explains. He adds that for honest businesses and importers, uncertainty complicates stock and pricing planning. "Overall, the economy is slowing down as domestic demand remains weak and consumer confidence declines, limiting the expected effects of the recovery."

Recommendations

Suttyhudeo Tengur: "To optimize the Price Stabilisation Fund, it is essential to target subsidies on products genuinely consumed by vulnerable households and avoid generalized aid. Transparency in pricing mechanisms and strict control over importers' margins are crucial. The government should prioritize temporary and adjustable subsidies based on international developments. Finally, integrating a monthly monitoring system and independent audits would ensure sustainable, equitable, and abuse-free usage."
Jayen Chellum: "We live in a society comprised of different income groups, yet everyone benefits from the same facilities and subsidies. To ensure better use of public funds, the government should have established a targeting system. This would provide real relief to those in need. With the current system, inequalities are likely to persist or even worsen. However, we know that politically, implementing such targeting remains complex. I believe it is high time to closely examine the profits made by intermediaries, as they contribute to driving up prices through a multitude of fees and charges."
Claude Canabady: "We need to revisit how the different committees operate. It might be worthwhile to form a smaller committee and include at least one consumer association, to carry out more rigorous preparatory work and allow for faster progress. It would also be wise to consult the public, for example by asking questions at the exits of supermarkets or other strategic locations. A consulted individual feels psychologically valued, knowing they are appreciated. Too often, the average Mauritian is faced with a fait accompli, without having been consulted, which can lead to frustrations as we have already seen."