[Essential Goods and Medicines] The State Strengthens Its Shield Against Price Increases

On Tuesday afternoon, during a press conference in Ébène, the Minister of Commerce and Consumer Protection, Michaël Sik Yuen, announced a series of new measures aimed at easing the cost of living while highlighting the main achievements of his ministry.

As part of the extension of the fixed-quantum subsidy scheme under the Price Stabilisation Fund, two additional essential products will now be subsidized starting January 15, 2026: canned mackerel or sardines, and adult diapers. Furthermore, a fixed subsidy will be introduced for certain medications, including antihypertensives, treatments for cardiovascular diseases, and antidiabetic medications priced at Rs 100 or more.

Specifically, the assistance will amount to Rs 10 per can of mackerel or sardines, Rs 50 per pack of ten adult diapers, and Rs 50 per box of the relevant medications. The minister emphasized that these measures are part of a comprehensive strategy to support purchasing power, particularly for vulnerable households and individuals in difficulty.

Michaël Sik Yuen reminded that several products already benefit from support mechanisms, which have helped mitigate the impact of inflation on consumers. He also highlighted the removal of VAT on frozen and canned vegetables as part of the current budget, in addition to the introduction of profit margin caps set at 25% for canned vegetables and 34% for frozen vegetables.

Regarding consumer protection, the minister indicated that 12 new regulations have been introduced by the Consumer Affairs Unit. These cover various areas, from safety standards for children's toys to regulations applicable to gas water heaters, as well as the sale of essential products in emergency situations.

Discussing the financial situation of the State Trading Corporation (STC), Michaël Yuen praised the agency's performance, reporting a surplus of Rs 3.5 billion as of June 30, 2025. Since 2024, the STC has reduced the price of diesel once and petrol twice. It has also acquired a storage terminal for $33.5 million and plans to introduce new products to the market.

The minister further commended the reduction of the Price Stabilisation Account deficit, which has decreased to Rs 2 billion from Rs 4.2 billion on June 30, 2024, and Rs 2.4 billion on June 30, 2025. "We are on the right track to lighten consumer spending," he stated. He assured that despite rising prices in international markets, the prices of certain essential products, such as rationed rice and gas, are being maintained locally.

Lastly, among upcoming projects, the ministry plans to develop new regulations governing the used vehicle market, aimed at enhancing transparency and providing better protection for consumers.