The government on Saturday rejected reports that it had completely stopped subsidising staple food items after a new policy sent food prices up across the country.
The government says the policy, which came into effect Saturday, is implemented to ensure that food subsidies are provided only to financially disadvantaged households.
Minister at the President’s Office Ahmed Zuhoor said that “the government already providing subsidises to cover between 65% to 70% of State Trading Organisation’s spending on importing and distributing staple foods at affordable rates.” “This decision is not completely cutting food subsidies, but ensuring that only financially disadvantaged households are benefitted from subsidies,” he added.
He said “the food subsidy policy was revised because many people who are not eligible for food subsidies were receiving the benefits due to the flaws in the system. Beneficiaries included some 130,000 to 170,000 foreign workers.”
Speaking to the media at a press conference held at the President’s Office, Deputy Minister of Economic Development Adam Thaufeeq urged businesses to follow the revised controlled rates of staple foods set by the government.
With the revised policy, the Government would continue to provide food subsidies to eligible citizens at a rate of MVR40 per month, and MVR140 per household per month. National Social Protection Agency (NSPA) said that income and living standards will be considered in providing food subsidies.
Assistant Director at NSPA Afrah Naeem said that “subsidy payments will be deposited to the account of one of the recipients in an eligible household. We will respond within 15-days of the submission of application forms.”
As per the revised rates, a kilogramme of rice will be sold for MVR7.96, up from MVR3.98. A kilogramme of flour, which was earlier sold at MVR2.96, will now be sold at MVR5.96 while the price of a kilogramme of sugar increased from MVR4 to MVR8.
The government spends around MVR310 million on food subsidies every year.