As Ramadan approaches, the government has reaffirmed its commitment to keeping commodity prices stable across the nation, ensuring all citizens have access to essential goods at affordable prices.
Central to this effort is the State Trading Organization (STO), which was established to provide basic necessities at reasonable rates. Historically limited to just three staple items—flour, sugar, and rice—the list has been significantly expanded since last year to include 10 vegetables, 10 fruits, and three additional food items.
The Minister Economic Development and Trade, Mohamed Saeed announced last week that the government is working to guarantee uninterrupted availability of these products in all islands, with STO services set to be fully operational in designated cities and populated islands of 3,000 or more before Ramadan begins.
In a broader move to prevent price shocks, authorities are now monitoring the prices of 162 key commodities daily, enabling swift intervention if sudden price hikes occur.
While some critics have raised concerns over government involvement in market activities, Minister Saeed emphasized that this oversight operates within a free-market framework, aimed solely at protecting consumers.
By prioritizing wholesale distribution and supporting small businesses with affordable supplies, the government aims to make this Ramadan a period of economic relief for all Maldivians, he added.
Earlier in December last year, traders indicated that commodity prices are likely to increase due to the current tightness in dollar availability. The period of Ramadan is expected to be marked by elevated prices, prompting measures from the State Trading Organisation (STO) to mitigate the impact.
STO Managing Director Shimad Ibrahim stated that the company, in collaboration with the economic ministry, has begun monitoring price changes in the market. A list of essential food items, particularly those that tend to see price increases during Ramadan, has been prepared. Efforts are underway to import these items in significant quantities before Ramadan begins.
“We are examining goods that typically experience price hikes and will provide alternatives through STO supermarkets. Our aim is to introduce quality products at lower prices as alternatives to certain bread and brand options,” said Shimad.
While the Maldives Monetary Authority (MMA) reported that overall inflation remained stable at 1.1% as of October—1.5 percentage points lower than the same period last year—food prices have shown an upward trend.
STO's initiatives aim to alleviate the economic burden on households during the Ramadan period.
