Importers and distributors were quick to revise their prices upwards after the end of subsidies on seven product categories. However, the wait is longer with regard to the downward revision of the prices of certain products.
After the end of the state subsidy mechanism, the seven categories of products (milk powder, oil, dried grains, canned fish, canned tomatoes, margarine, cheese) and the five additional products (pasta, cereals, food infant, baby and adult diapers) were placed under price controls. This, in order to protect consumers against price abuse.
However, these new prices are still expected in supermarkets.
At Intermart, the prices of diapers, cereals or even pasta have not been revised downwards. “We practice prices in relation to the list of prices recommended by suppliers. But as I speak to you (July 13 at 2 p.m.), we have still not received the new price lists,” explains the Chief Operating Officer (COO), Abthar Dhurrun. As a result, prices without the mark-up of 23 to 25% are still practiced. Ditto in SaveMart supermarkets. “So far, there is no control over the prices of the five new product categories that are affected by the mark-up,” says Beefa Cooshnaduth, Head of Retail. The latter maintains that the new lists to be able to lower the prices are still awaited from the suppliers.
What the suppliers say
Pharmacie Nouvelle Ltd, which markets and distributes BébéCâlin brand baby diapers and Blédina brand baby food, will announce the new prices in the coming days. “Indeed, after having submitted our ‘costing’, we are awaiting the list of prices recommended by the Ministry of Commerce”, they say. In addition, we are told that it is the margins of diapers and baby food that will be controlled. It is good to know that PNL also imports pasta from the Panzani brand, which remains one of the bestsellers in Mauritius.
At Innodis, COO Sonny Wong confirms that price amendments for all categories that are affected by the maximum mark-up have already been communicated to retailers since July 1st. “This also applies to new categories, such as Huggies brand baby diapers and Barilla brand pasta,” he says.
Ministry of Commerce: “Exercises concerning price adjustments are continuing”
At the level of the Ministry of Commerce, it is understood that the exercises concerning price adjustments are continuing. “We have already approved a good number of lists of new prices which must be charged to consumers taking into consideration the mark-up established by the ministry. We always study the costings sent by the suppliers. Arrangements will be made to ensure that the new prices are applicable as soon as possible.
Baby food and diapers: Down 8% and 4% respectively
With the introduction of the maximum margin (mark-up), the retail prices of the seven essential products should be 23% lower on average than their real market prices. This was made clear by Trade Minister Soodesh Callichurn in Parliament on Tuesday, July 12. He also clarified that for baby food and diapers, with the maximum mark-up, expect retail prices to be reduced by 8% and 4% respectively.
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