The State Trading Corporation (STC) was set up by an Act of Parliament of October 1982 (amended in 1988), to be the trading arm of the Government of Mauritius. It operates under the aegis of the Ministry of Industry, Commerce and Consumer Protection.
STC has been entrusted with the responsibility of importing certain essential commodities including all petroleum products and Liquefied Petroleum Gas (LPG) traded in Mauritius. STC also supplies the domestic market with Wheat Flour, Basmati and non-Basmati Rice.
The rice purchase mission, for the first time, contracted for supplies of Basmati rice and Thai fragrant rice. STC installed its own packing plant and sold the luxury rice through the existing marketing system. It also distributed directly to retailers island wise in packets using its own fleet of vehicles. Following this activity, the consumption of luxury rice went up to over 10,000 metric tons annually. Consequently, the consumption of ration rice which was about 72,000 metric tons annually, started to go down thus decreasing the amount of subsidy.
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