The Ministry of Industrialization, Trade and Consumer Affairs released at a press conference yesterday the ceiling prices for certain basic necessities (PPN) sold in retail.
After the continuous rise in the markets, which mainly affects imported products, the State is trying to take accompanying measures. Yet they are far from convincing consumers.
Imported rice is set at 2,200 ariary per kilo, soybean oil at 9,100 ariary per litre, Namakia sugar at 2,750 ariary per kilo and imported sugar at 3,600 ariary. The cement is fixed at 39,000 ariary per bag, whereas on the current market, the price of some distributors is still below that. A situation which notably provoked the indignation of Solofo Ranaivosoa, a resident of Ambohibao. ” These ceiling prices push distributors to increase prices, because we still buy the bag of cement at 36,000 ariary “, he says.
Four products are affected by these caps: rice, sugar, edible oil, gas and cement. The soap that doubled in price in a matter of weeks is not on this list. Yet it is a product used daily by Malagasy households.
The establishment of the list of these prices was carried out following consultation between the Ministry of Industrialization, Trade and Consumption, producers, importers and wholesalers. A discussion that was not easy according to Minister Edgard Razafindravahy whom many accuse of not really knowing the reality in which the population lives, which is why he let himself be dominated by importers and wholesalers in this discussion. The principle of the establishment of these ceiling prices would be the limitation of the margins of wholesalers and retailers.
The war in Ukraine has caused a surge in the prices of basic agricultural products and, by extension, the rise in food prices worldwide. A surge in prices, however, raises fears of worsening poverty in a country where purchasing power is already very low and where the population has recently been hit by natural disasters.
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