Amendments will send food prices soaring, warns government
05 Jul 2010, 9:27 PM
Minivan News
The prices of staple foodstuffs will “go up dramatically” if amendments to the Public Finance Act are ratified, warns the State Trading Organisation (STO).
At the now daily President’s Office press conference yesterday, Undersecretary Ibrahim Rasheed revealed that the STO has informed President Mohamed Nasheed that prices would spike if the government ceased its subsidies.
“Until subsidies can be given again through new legislation, subsidies given by the government for foodstuffs will become illegal (if the amendments are ratified),” he said. “Therefore, if this amendment becomes law, a kilo of rice will be at Rf9.75, a kilo of flour Rf6.12, a kilo of sugar Rf8.01.”
In 2009, the government provided over Rf139 million in food subsidies to STO to control prices of staple foods.
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