Government has changed the food subsidy policies and decided to give it, based on a need basis.
Ministry of Economic Development said that the subsidies given on staple food items amounts to more than 300 million Rufiyaa every year and a huge percentage of it is used by foreigners.
Officials said that, hence government has the policy and now only people who need it the most will receive the subsidy.
Those who need the subsidy will receive a monthly cash payment via NSPA. With this change, starting from 1st October STO will sell 1kg of rice for Rf7.96, 1kg of sugar for Rf8, and 1kg of flour for Rf5.96.
The previous price of rice was Rf3.98 per kilogram while 1kg of sugar was for Rf4 and 1kg of flour was for Rf2.96. With the subsidies the prices of these items were sold at a 30% discount rate.
With this change in policy, those who are most in need of the subsidies will benefit more according to the Economic Ministry. It should be noted that the World Bank has also requested the government several times to introduce targeted subsidies rather than giving it to everyone.
Food subsidies to be given to only people who need it the most
