STO plans local cultivation to reduce food import costs
Shimad added that the initiative is aimed at reducing reliance on foreign currency.
The State Trading Organisation (STO) has announced plans to begin cultivating food products in the Maldives as part of a long-term strategy to stabilise food prices.
STO Managing Director Shimad Ibrahim told a press conference on Thursday that while fruits and vegetables will initially be imported in bulk, the company intends to identify crops that can be grown locally. “In the short run, we have to import these items. But in the long run, we will grow them in different parts of the Maldives,” he said.
Shimad added that the initiative is aimed at reducing reliance on foreign currency. He noted that the Maldives spends around USD 12 million annually on onion imports alone.
As part of immediate price control measures, STO has started selling imported oranges at MVR 35 per kilogram. Apples and oranges will also be stocked in STO supermarkets from next week.
President Dr Mohamed Muizzu announced on Wednesday that STO will import 10 types of fruits and 10 types of vegetables in bulk for the local market. Imports will be decided annually, based on demand and volumes brought into the country.
Shimad confirmed that STO does not import food at government-subsidised rates, but under an agreement with the government, the company will launch the new products before 15 October. The specific list of fruits and vegetables to be imported has not yet been disclosed.
He added that STO intervenes in the market when the prices of staple food items rise, noting recent increases in onion, salt and coconut prices. According to him, market rates tend to adjust once STO releases stock into circulation.
