During the holy month of Ramadan in the Maldives, households customarily prepare an extensive array of food items for breakfast. This cultural practice results in a noticeable surge in commodity prices, driven by increased demand.
Last year's Ramadan was marked by the administration's proactive initiatives aimed at regulating commodity prices, particularly for food items, while avoiding undue burdens on private importers and sellers. With the forthcoming Ramadan on the horizon, the administration is prepared to replicate these strategies to ensure price stability.
According to the Ministry of Economic Development and Trade, the government implements various measures throughout the year to maintain commodity prices within affordable ranges. When the price of a specific commodity escalates significantly, the State Trading Organization (STO) steps in to import the commodity, thereby curbing price inflation. By distributing these imported commodities to wholesale businesses, the STO effectively stabilises prices.
Currently, the STO is procuring commodities anticipated to see price increases during Ramadan. These include onions, potatoes, eggs, lemons, coconuts, and other essential goods, which are offered at prices below the prevailing market rates.
Measures to Maintain Affordable Essentials
As part of its comprehensive price regulation efforts, the economic development ministry monitors the prices of 141 essential commodities. This list, determined based on international standards and domestic usage, comprises 93 food and beverage items, 38 types of fruits and vegetables, and 10 varieties of fish.
To ensure the affordability of these products, ministry officials conduct regular inspections of markets and shops in the capital, Malé, as well as the outer islands. This monitoring is intensified in the lead-up to Ramadan each year. Preparations for the upcoming Ramadan began in October last year, involving collaboration with the STO and private importers to secure an uninterrupted supply of goods.
Government's Ramadan Price Control Efforts
The administration is also focused on establishing temporary farmers' markets in Malé and both phases of Hulhumalé to provide agricultural produce. Efforts are being made to expedite customs clearance for importers through discussions with Maldives Airports Company Ltd. (MACL) Cargo, Maldives State Shipping (MSS), Maldives Ports Limited (MPL), and Maldives Customs Service. MPL has already implemented measures to streamline the customs clearance process for essential and high-import goods, including perishable cargo, through the Malé Commercial Harbour and Hulhumalé Port.
Stabilising Ramadan Prices for Essential Goods
With a firm commitment to preventing price surges of essential commodities during Ramadan, the administration, alongside the STO, stated that it will ensure a consistent supply of goods in outlets across the outer atolls. Should products run out of stock, arrangements with the Maldives Transport and Contracting Company (MTCC) will guarantee prompt resupply, according to the STO.
Additionally, the economic development ministry is preparing to launch an online platform that will allow the public to view current prices of essential goods and their availability. The successful measures implemented during last year's Ramadan are set to be replicated this year, according to the administration, aiming to maintain controlled prices and a continuous supply of essential goods.