Government will place necessary measures against any price hikes of food items during the upcoming Holy month of Ramadan, Minister of Economic Development and Trade, Mohamed Saeed has assured.
Minister Saeed provided the much needed reassurance during the fourth forum of the 'Ahaa' series, through which the government provides direct answers to citizens' questions which was held on Saturday evening.
The Minister said this Administration has continued to largely maintain the inflation rate at three percent.
He added that the government had managed to keep prices of food items stable during last Ramadan made possible by President Dr Mohamed Muizzu’s decision to constitute a special committee to monitor and oversee any price fluctuations.
Under a similar arrangement and measures, the Minister expressed confidence that the government would be able to keep prices stable during this Ramadan, scheduled to begin on 1 March.
Referring to a World Bank report last year, Minister Saeed said though the World Bank had forecasted Maldives’ inflation to cross seven percent, the government through proactive measures has managed to keep inflation below three percent.
He said the cabinet had formulated and implemented a policy on the direct instructions of President Dr Muizzu.
"There is a special policy on how to deal with any price increases in the market. But that is just one aspect. The other thing is the number of items. It is a list of 183 items. Of these, 54 items have been identified as essential items for the month of Ramadan,” the Minister explained.
According to Minister Saeed, the government is ready to quickly step in if there is any hike in prices on the essentials list.
"Onion is also being brought in through STO [State Trading Organisation]. It will be cheaper. If it is not available from one place, it will be brought in from elsewhere. It means if we can’t source it from one country, we will bring it in from another country. If it cannot be brought by sea, it will be brought by air freight,” he explained.
“Our target is to immediately attend to any increase in prices.”
The Minister had also urged private suppliers, wholesalers and retailers to take additional measures to mitigate rise in prices asking them to share any difficulties or challenges faced with the government.
Minister Blames “Negligence” for Delay in Bunkering Services
Responding to a question on the recently introduced bunkering services in the Maldives, Minister Saeed said previous governments had not given any emphasis to developing the sector.
He said in the past five months since the initiative was launched, the country had made great strides in further developing the sector, insisting that this venture will prove hugely beneficial to Maldives’ economy.
Minister Saeed revealed that State Trading Organisation Plc (STO) has already brought in two shipments so far with the third en-route. He also said a special law on international bunkering has been drafted, which marks a first for the island nation.
However, the Minister did admit the Maldives is facing several challenges especially from neighbouring countries that have already developed off-shore bunkering facilities.
He said Maldives has lagged behind as previous governments had not attached any significance to developing this sector.
"Some of our neighboring countries provide international bunkering services, with on-port facilities. That means they have tanks in ports and roads, storage facilities where vessels can come in and easily get these services. Maldives has to compete with them. This is truly years of negligence you see,” he explained.
International bunkering services were officiated on September 19. The government projects that the bunkering services will generate an additional USD 400 million, creating a new industry valued at USD 390 million.
In order to provide maritime services related to bunkering, Maldives Ports Limited (MPL) has established a designated centre in the northern islands. The services it will provide include pilotage, yacht docking, crew change services, and supply of essentials.
Minister Saeed said the construction of a storage facility for bunkering services in Hoarafushi, Haa Alifu Atoll will begin this year, adding that the construction of a port and a terminal will take international bunkering services in the Maldives to new heights.
The forum, which shares information about the government's work with the public, has been structured in two formats with some including the President's participation, while others featuring Ministers.
The public forum with Ministers is open to everyone, and questions can be submitted through various channels, including in-person attendance, phone calls, SMS, and social media.