Africa-Press – Seychelles. Retailers are to soon be bound by a maximum retail price (MRP) applicable to the fourteen basic commodities imported and distributed by the Seychelles Trading Company (STC), a temporary measure imposed by government with the aim of easing the economic burden on citizens.
The measure, which will apply for a one-year timeframe, is expected to come into force in October through a Presidential order, and applies to sunflower oil, rice, sugar, milk powder, lentils, salt, margarine, flour, toilet paper, infant formula, and onions, potatoes, apples and oranges, which are currently being subsidised by STC.
According to the director general for Trade, Ricky Barbe, instead of the recommended retail price (RRP) measure enforced now, STC will fix the MRP for these essential commodities. In the event that retailers are found to be exceeding the MRP, there will be legal repercussions by the enforcement authority, the Fair Trading Commission (FTC).
“It is not necessarily a price control mechanism, as we are not interfering with any other goods, except for those STC commodities. Wholesalers can still import their products and compete as was, and is, the case now. But, the community at large will benefit from a more affordable price for these products,” Mr Barbe noted.
The rising cost of living has been further exacerbated by the ongoing war between Russia and Ukraine, necessitating government intervention, he further justified. Even with the RRP measure, retailers are not bound by law, and are free to set their own prices in a free-market economy such as Seychelles’.
Importers and wholesalers will not be unfairly impacted by the emergency measure, and the profit margin proposed to retailers is not expected to change either.
“We do not want to control the market, but only what government already has some control on through the STC. This is to ensure that we provide some form of assistance to the population, without going further to control competition or the market in general,” Mr Barbe added.
The country’s standing with the World Trade Organisation (WTO) is to also remain unaffected by the emergency measure, as the international trade regulator provides for emergency measures to be introduced by member states, during critical times.
In a bid to alleviate the burden on consumers from Praslin and La Digue government will also be introducing a 25 percent excise tax concession applicable on fuel used by cargo vessels transporting commodities between the islands of Mahé, Praslin and La Digue.
“The price of fuel is also rising rapidly, so, the assistance will be given to ferry owners, who will benefit from a 25 percent reduction in the fuel price. This measure is not aimed at reducing commodity prices, but rather to maintain prices, despite the rise in fuel price,” Mr Barbe added.
As per information held by the department, three ferries consistently operate the route from Mahé to Praslin, making trips three times per week.
The concession is to also apply for one-year, by which time there will be an evaluation to determine if it is to be removed or extended. It is forecasted to cost government R17 million for the one year, a figure which is considered sustainable for government.
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