STC reviews price structure to offer a wider choice of affordable goods |29 April 2022

STC chief executive Siana Bistoquet

Joining to help in the national effort to reduce the cost of living in the country, the Seychelles Trading Company has announced that 12of the 14 essential subsidised list of basic items will slightly increase in price, but the slight increase will be absorbed by the decrease in prices of 69 other items considered as semi-essential, allowing families to make a minimum 5% benefit in their end-of-month shopping basket.

It was the chief executive of Seychelles Trading Company (STC), Siana Bistoquet who made the announcement during a briefing with the press on the afternoon of Wednesday April 28, 2022, at the STC headquarters, Latanier road.

Present were principal secretary for Trade in the Ministry of Finance, National Planning and Trade, Ronald Cafrine, chairman of STC, Imtiaz Umarji; and deputy chief executive of STC, David Jean-Baptist.

The review of prices on STC’s category 1 portfolio of products and a price reduction on several other essential products to benefit its customer and the entire population at large, was approved by the Cabinet of Ministers on April 1, 2022. The 82 products are top items purchased by families.

On giving examples of the benefits of the initiative (depending on the mix of products purchased) and new price structure that will take effect as of May1, 2022, Mrs Bistoquetsaid from exercises conducted,a family of four who normally would spendR3,554.90 on their shopping basket, they will now pay R3,363.65 for the same basket, a reduction of R191.25(-5.368%). For a single mom with two, spending on averageR3,039.08 on their shopping basket a month,she will now spend R2,784.88, a net saving ofR254.20 (-8.36%). As for an enthusiastic group of youth people going on a gathering, their current R839.94 shopping basket will now be reduced to R737.37, a net saving ofR102.57(-12.21%).

Among the previous category 1 portfolio of products, the price of onions and potatoes has remained the same given the fact that they are seasonal products at which the prices fluctuate. Among the list of increased commodities are cooking oil, especially Sunflower,which has increased the most at R36.81 a litre compared to the old subsidised price of R23.75 a litre. To prevent an increase in the price of bread, flour which has also been increased will be sold to bakeries at cost price. She noted that even with the increase in the price of cooking oil, STC is still subsidising the item and that includes STC milk powder and NAWAR Sunflower margarine. She added that the adjustments in prices are on products imported by STC only.

Mr Umarji stated that the reason for the alignment in prices for the 12 category 1 items was because they were benefiting only big business establishments which were buying in bulk, rather than the ordinary Seychellois families, while STC was making a loss. He added that it is the reason why also big businesses would rather buy these products at STC than import and pay the actual price on the international market.

Speaking on further reduction in the prices, Mr Umarji stated that it will depend on external shocks and circumstances. He explained that if freights and prices of commodities being affected by the pandemic and the ongoing war in Ukraine, improve, certainly prices of STC commodities will go down. He noted that if freights and prices of commodities on the world market keeps going up, STC will do its utmost to maintain the actual set prices as it is here to not make a profit but to ensure food security and food availability at an affordable price.

He said that apart from benefiting the customers, the new price structure adjustment has been made in the manner for STC to become viable to offer the service.

It is to be noted that the prices of STC’s 14 basic household commodities have remained unchanged over the past 10 years.

Patrick Joubert