G/STR/N/18/MUS  
 
16 June 2020  
(20-4269) Page: 1/13 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE  
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
Mauritius  
The following communication, dated 9 June 2020, covering the years  2018-2019,  is being circulated 
at the request of the delegation of Mauritius.  
 
_______________  
 
 
1. AGRICULTURAL MARKETING BOARD (AMB)  
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identif ication of state trading enterprises  
Agricultural Marketing Board (AMB)  
B. Description of products affected (including tariff item number(s) encompassed in product 
description)  
HS CODE  PRODUCTS*  
0703 1000  Dry whole onions  
0703 2000  Fresh whole garlic  
0701 9000  Fresh whole potatoes  
0703 2000  Garlic seeds  
0703 1000  Onion seeds  
0701 1000  Potato seeds  
030329  By catch fish (frozen fish)  
* Above products are Controlled Products as defined by the Mauritius Agricultural Marketing Act 1963.  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing or maintaining state trading enterprise  
i. To encourage local production of as much of the country's food requirements as is 
economically feasible;  
ii. To ensure that marketing costs are at a minimum  consistent with satisfying consumer 
demand;  
iii. To limit price fluctuations in line with consumer preference;  G/STR/N/18/MUS  
 
- 2 - 
 
  iv. To operate its installations and other resources with maximum efficiency for the benefit 
of producers and consumers;  and 
v. To regulate standards and quality of products falling under its control.  
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
i. Mauritius A gricultural Marketing Act 1963  
ii. The AMB was set up to:  
(a) Provide or ensure the provision of efficient marketing facilities;  
(b) Maintain the register of all producers, buying agents, millers and dealers;  
(c) Acquire and disseminate market intelligence ; 
(d) Operate or provide for the operation of storage, handling, transport and 
processing  facilities for controlled products;  
(e) Buy, sell, import, export or otherwise deal in Controlled Products;  
(f) Take measure as it considers necessary to stabilize,  augment or reduce the 
production or prices of controlled products;  and 
(g) Regulate the standards and quality of Controlled Products.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operation s of the state trading enterprise  
(a) Inducing primary producers to invest for optimal yields through fixed floor prices 
reckoning a fair return above inputs recommended by research;  
(b) Eliminating market losses and providing modern storage and marketing facilities not 
requiring the intervention of middlemen;  and 
(c) Implementing a pricing policy based on  the best advantage of both producers and 
consumers.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading enterprise  
(a) AMB controls the import of onions, garlic, potatoes, onion seeds, garlic seeds, potato 
seeds and by -catch fish and market onions, garlic, potatoes, onion seeds, garlic seeds and 
potato seeds.  
(b) The right to surrender any of the Controlled Products s hould the Board deem fit  – 
Section  17 of its act. It can also authorize sales in such quantity area, or during such period 
and conditions as may be specified by regulations made by the Minister on the advice of the 
Board.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Any company, partnership or trader may import such commodities as permitted from time to time 
by AMB , e.g. table potatoes, onions, onion see ds, garlic seeds and potato seeds. The import permits 
need to be endorsed by the AMB.  G/STR/N/18/MUS  
 
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  D. How import/export levels are established by the state trading enterprise  
Imports/exports are supplements to local production whenever estimated yearly production 
forecasts are below/above consumption levels.  
E. How export prices are determined  
Export prices are selling prices of local products, plus administrative clearance fees and related 
custom charges.  
F. How the resale prices of imported products are determined  
As AMB is run on sound commercial principles, imports are resold at cost c.i.f. Port Louis plus a 
percentage of expenses calculated to cover administrative, financial and storage costs.  
(a) Contracts are negotiated as and when required with foreign companies for the supply of 
products. AMB implements contractual agreements for potato, onion and garlic seed programmes 
for and on behalf the Government.  
G. Whether long -term contracts are negotiated by the state trading enterprise. Whether the state 
trading enterp rise is used to fulfil contractual obligations entered into by the government  
Controlled products are usually bought by AMB through a guaranteed producer price based on cost 
of production plus a margin of profit. The goods are stored and sold to dealers at  a margin for resale 
at retail level at prices fixed or recommended by AMB or government. Growers are encouraged to 
sell their own produce directly to the market. Imports are made by AMB except where permits have 
been issued to private importers. The retai l selling prices are not controlled.  
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I  - IV)  
  G/STR/N/18/MUS  
 
- 4 - TABLE I  
STATE TRADING: AGRIC ULTURAL MARKETING BO ARD 
STATISTICAL INFORMATION, IMPORTS 2018  
Description of product(s) 
(including HS number(s))  Total quantity 
imported  Quantity 
imported by 
state trading 
enterprise  Average  
import price  
(include charges)  
 Average 
representative 
domestic sales 
price  Mark up  National 
production  
(projected 
figures)  
1 2 3 4 5 6 7 
 Tonnes  Tonnes  Rs/Tonne  Rs/Tonne  % Tonnes  
0701 9000 Fresh whole potatoes  9,688  6,048  24,583.81  28,000 -30,000  13.9-22 17,033  
0701 1000 Potato seeds  1,735.13  548.13  37,673.79  41,300  9.6 N /A 
0703 2000 Fresh whole garlic  1,988  1,988  52,015.55  110,000  111.5  71 
0910309 Turmeric powder  N/A 8 61,305.33  100,000  63.1 N/A 
0703 1000 Dry whole onions  14,414  9,318  27,912.82  30,000  7.5 3,440  
0908301 Cardamoms  N/A 0.5 553,968.50  800,000  44.4 N/A 
0701331 Bean seeds  N/A 7.85 188,571.11  250,000  32.6 N/A 
0703 1000 Onion seeds (kg)  N/A nil nil Rs 10,375/kg  N/A N/A 
   
  G/STR/N/18/MUS  
 
- 5 - TABLE II  
AGRICULTURAL MARKETI NG BOARD  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES -2018 
Description of product(s)  
(including HS number(s) ) Domestic purchases by state 
trading enterprise  National production  Domestic sales by state 
trading enterprise  National 
consumption***  
1 2 3 4 5 
 Tonnes  Tonnes  Tonnes  Tonnes  
0701 9000 Fresh whole potatoes  3,845.5  17,033  8,957.9*  25,000  
0701 1000 Potato seeds  700 N /A 955* N/A 
0703 2000 Fresh whole garlic  0 71 1,813.7**  2,184  
0910309 Turmeric powder  - N/A 8.9**  100 
0703 1000 Dry whole onions  146.3  3,440  9,199.8*  16,500  
0908301 Cardamoms  - N/A 1** 15 
0701331 Bean seeds  - N/A 5.95**  N/A 
0703 1000 Onion seeds (kg)  237 kg  N/A 110 kg*  N/A 
* Domestic sales include local produce only.  
** Only imported produce.  
*** Estimates based on sales at AMB and privates.    
  G/STR/N/18/MUS  
 
- 6 - TABLE III  
STATE TRADING: AGRIC ULTURAL MARKETING BO ARD 
STATISTICAL INFORMATION, IMPORTS 2019 
Description of product(s) 
(including HS number(s))  Total quantity 
imported  Quantity imported by 
state trading enterprise  Average  
import price  
(include 
charges)  Average representative 
domestic sales price  Mark up  National 
production  
(projected 
figures)  
1 2 3 4 5 6 7 
 Tonnes  Tonnes  Rs/Tonne  Rs/Tonne  % Tonnes  
0701 9000 Fresh whole potatoes  6,932.28  3,908.28  21,439.69  28,000 -30,000  30.6-39.9 14,822  
0701 1000 Potato seeds  1,286.5  468.75  40,583.45  43,000  6 638 (AMB only)  
0703 2000 Fresh whole garlic  1,796  1,796  62,020.79  110,000  77.4 48 
0910309 Turmeric powder  N/A 9 59,924.80  100,000  66.9 N/A 
0703 1000 Dry whole onions  14,727.20  9,687.20  24, 638.55  30,000  21.8 3,219  
0908301 Cardamoms  N/A 0.5 1,222,186  700,000  (42.7)  N/A 
0701331 Bean seeds  N/A 8 176,404.98  250,000  41.7 N/A 
0703 1000 Onion seeds (kg)  N/A Nil N/A Rs 4,980/kg  N/A N/A  
  G/STR/N/18/MUS  
 
- 7 - TABLE IV  
AGRICULTURAL MARKETI NG BOARD  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES -2019 
Description of product(s) 
(including HS number(s)  Domestic purchases by 
state  trading enterprise  National production  Domestic sales by state 
trading enterprise  National consumption***  
1 2 3 4 5 
 Tonnes  Tonnes  Tonnes  Tonnes  
0701 9000 Fresh whole potatoes  3,752.8  14,822  10,190.9*  25,000  
0701 1000 Potato seeds  638 638 (AMB only)  633* N/A 
0703 2000 Fresh whole garlic  0 48 1,883.3**  2,184  
0910309 Turmeric powder  - N/A 8.5**  100 
0703 1000 Dry whole onions  133.2  3,219  9,199.8*  16,500  
0908301 Cardamoms  - N/A 0.7**  15 
0701331 Bean seeds  - N/A 4.3**  N/A 
0703 1000 Onion seeds (kg)  442.5 kg  N/A 266 kg (AMB only)  N/A 
* Domestic sales include local produce only.  
** Only imported produce.  
*** Estimates based on sales at AMB and privates.G/STR/N/18/MUS  
 
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  2. STATE TRADING CORPORATION  
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state trading enterprise  
State Trading Corporation (STC)  
B. Description of products affected (including tariff item number(s) encompassed in product 
description)  
No. Products  HS Code  Nature of exclusivity, special  
rights, or privileges  
1 Long Grain White Rice  10064000  Sole Importer of subsidized Rice  
2 Wheat Flour  11010000  Sole Procurer of subsidized Flour  
3 Petroleum Products  
 
A. Clean Petroleum Products  
(i) Motor Gasoline  
(ii) Gasoil 50 ppm S  
(iii) Gasoil 2500 ppm  
 
 
 
(iv) Jet A1S  
 
B. Dirty Petroleum Products  
(i) HSFO 180 cSt Catalytic Crack (CC)  
 
 
(ii) HSFO 180 cSt Straight Run (SR)  
 
 
(iii) HSFO 380 cSt Straight Run (SR)   
 
 
27101919  
27101950  
27101950  
 
 
 
27101931  
 
 
27101969  
 
 
27101969  
 
 
27101969   
 
 
Sole Importer  
Sole Importer  
Importer (private companies are also 
allowed to import the product for marine 
bunker trade)  
 
Sole Importer  
 
 
Sole Importer for inland use (private 
companies are also allowed to import the 
product for marine bunker trade)  
Sole Importer for inland use for power 
gener ation 
 
Sole Importer for inland use for power 
generation (private companies are also 
allowed to import the product for marine 
bunker trade)  
4 Liquefied Petroleum Gas  27111310  Sole Importer  
5 Basmati Rice  10063010  Importer  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing or maintaining state trading enterprise  
(a) to negotiate the purchase of goods ; 
(b) to engage in the manufacture or processing of goods and to ensure their marketing ; 
(c) to import goods with a view to their marketing, distribution or supply by wholesale or 
retail; 
(d) to export goods ; 
(e) to engage in the storage of petroleum products, and the promotion and development of 
bunkering and petroleum -related activities; and  
(f) to engage in such other activities a s may be authorized by the Minister.  
Note: The STC is not engaged presently in the activities at items (b) and (d).  
The STC was created to regulate and rationalize trade, particularly in relation to essential 
commodities.  G/STR/N/18/MUS  
 
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  B. Summary of legal basis for gran ting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
The STC was created by an Act of Parliament on 8 October 1982. It took over the activities of the 
Department of Suppli es of the Government, which was responsible for the importation and 
distribution of rice and wheat flour.  
The Corporation status was envisaged to give the STC greater flexibility than a Government 
Department, especially in the staffing, management and day -to-day business of the organization. In 
laying down the rules governing the functioning of the Corporation, the Government was guided by 
the willingness to give flexibility, maximum efficiency and reasonable autonomy to the Corporation 
while ensuring that it remains accountable to the Government and the Parliament of Mauritius.  
As per the Act that created the STC, the Corporation "shall in carrying out its objectives operate on 
sound commercial principles". The Board of Directors comprising representatives from the public 
sector and experienced businessmen from the private sector, with extensive powers to administer 
the Corporation, aims to confer a high degree of autonomy so vital to a commercial concern.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRA DING CORPORATION  
A. Summary statement providing overview of operations of the State Trading Corporation  
Petroleum Products  
The STC procures the country's requirement for petroleum products through annual open tenders.  
The Corporation procures 100% of the c ountry's demand for petroleum products (with HS code as 
per Part I B above) in bulk for domestic usage. The seven grades of petroleum products are imported 
and sold to the four privately owned local oil companies which own storage & handling infrastructure  
and ensure distribution. The importation of Gasoil 2500 ppm S, HSFO 180 CC and HSFO 380 SR is 
liberalized for the marine bunker trade.  
Long Grain White Rice  
The STC launches open international tenders and imports 100% of the country's requirements for 
subsidized rice (5% broken) on Cost & Freight (CFR) basis. The rice is received in STC's warehouse 
and from there sold to wholesalers at subsidized prices. Moreover, the STC has appointed 
packers/distributors to ensure distribution of these products all -round  the island.  
Flour  
The STC annually launches an open international tender for the country's requirement for flour. Flour 
is sold from STC's stores to wholesalers and bakers at subsidized prices. Moreover, the STC has 
appointed packers/distributors to ensur e distribution of these products all -round the island.  
Basmati Rice  
The STC started to import basmati rice during the last quarter of 2013 with a view to manage the 
abusive price increases of basmati rice on the local market. Presently, the STC is selling its basmati 
rice mainly to wholesalers. All consignments of basmati rice are analysed  prior to shipment in the 
country of origin and also by the Mauritius Standard Bureau in Mauritius so as to ensure a good and 
consistent quality of the product.  
Liquefied Petroleum Gas  
The STC is the sole importer of Liquefied Petroleum Gas (LPG) since 2003. The totality of LPG is sold 
from flange of tanker to two petroleum companies, namely Vivo  Energy  Mauritius  Ltd and 
Total Mauritius  Ltd. The local oil companies own stor age & handling infrastructure and ensure 
distribution.  G/STR/N/18/MUS  
 
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  B. Specification of exclusive or special rights or privileges enjoyed by the state trading enterprise  
The STC is the sole importer of LPG and petroleum products except for Gasoil 2500 ppm S, 
HSFO  180 CC and HSFO 380 SR , which have been liberalized for marine bunker trade since 2014.  
The Corporation pays all the necessary dues that are payable to the Mauritius Ports Authority, 
Customs Department and other authorities at the prescribed rates applicab le to all traders for these 
products.  
The STC does not enjoy any concessionary rates in the discharge of its activities ; however, it benefits 
from an exemption of 15% Customs Duty on importation of wheat flour.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Private companies are allowed to import long grain rice on equal terms as those of the STC, however 
the sale of "ration" rice on the local market is s ubsidized by Government through the STC. In respect 
of the importation of wheat flour, private traders are allowed to import the product subject to 
payment of 15% Customs Duty.  
D. How import/export levels are established by the state trading enterprise  
The STC and the local oil companies jointly determine the quantity of petroleum products and LPG 
to be imported on a yearly basis.  
With regard to rice and flour, the domestic demand is taken into consideration when determining 
the quantity to be imported.  
E. How export prices are determined  
Not applicable (please refer to Part II A above).  
F. How the resale prices of imported products are determined  
The wholesale and retail prices for subsidised rice and flour are determined by the Government 
through the Minis try of Commerce and Consumer Protection for all inland sales to wholesalers, 
distributors and bakers.  
The resale prices for Mogas and Gasoil (50 ppm S) used on the domestic market are determined by 
the Petroleum Pricing Committee (PPC). For the products so ld for the international market like Jet  A1 
for civil aviation, Gasoil 2500ppm S and Fuel Oils (HSFO 180 CC and HSFO 380 SR) for marine 
bunkering, the prices are determined by the STC. 
The retail price for LPG for domestic usage is determined by the Govern ment through the Ministry 
of Commerce and Consumer Protection.  
G. Whether long -term contracts are negotiated by the state trading enterprise. Whether the state 
trading enterprise is used to fulfil contractual obligations entered into by the government  
The Corporation does not have long -term contracts presently. The STC fulfils the contractual 
obligations entered into by the Government, whenever applicable.  G/STR/N/18/MUS  
 
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  H. Market structure  
No. Products  Market Structure  
1 Long Grain White rice  The STC is the sole importer of "ration rice" which is sold at the 
subsidised price fixed by the Government, the Corporation has 
some influence on the market price of rice imported by private 
companies on their own.  
2 Wheat Flour (White Wheat and 
Brown Bread Flour)  Sole supp lier of flour only.  
Special types of flour are imported by private companies for re -sale 
on the local market.  
3 Petroleum Products  
 
A. Clean Petroleum Products  
 
(i) Motor Gasoline  
(ii) Gasoil 50 ppm S  
(iii) Gasoil 2500 ppm S  
 
(iv) Jet A1  
 
B. Dirty Petroleum Products  
 
(i) HSFO 180 cSt Catalytic Crack 
(CC) 
 
(ii) HSFO 180 cSt Straight Run 
(SR) 
 
(iii) HSFO 380 cSt Straight Run 
(SR)  
 
 
 
Sole supplier  
Sole supplier  
Liberalized ( the STC and private companies import the product for 
marine bunker trade)  
Sole supplier  
 
 
Sole supplier for inland use, however private companies are allowed 
to import the product for marine bunker trade  
 
Sole supplier for inland use  
 
 
Sole supplier for inland use, however private companies are allowed 
to import the product for marine bunker trade  
4 Liquefied Petroleum Gas  Sole supplier  
5 Basmati rice  Perfect competition - there are presently more than 50 importers 
of Basmati rice having small market shares. All the importers 
(including the STC) sell Basmati Rice locally at the  market prices.  
There is free entry and exit to the market.  
IV. STATISTICAL INFORMATION (TABLE I  - II)  
  G/STR/N/18/MUS  
 
- 12 - TABLE I  
STATE TRADING CORPOR ATION  
STATISTICAL INFORMATION, IMPORTS (2018)  
Description of Product (s)  
including HS number(S)  Total quantity 
imported  Quantity 
imported  
by STC  Average import/ 
Purchase price  STC sales price to 
wholesalers/ 
distributors  National 
Production  Remarks  
Description  HS Code  MT MT Rs/MT  Rs/MT  MT  
Long Grain White Rice  10064000  Not available 
(n/a) 24,618.16  14,162.46  9,520.00    
Wheat Flour  11010000  n/a1 101,966.75  13,100.85  7,850.00    
Basmati Rice  10063010  n/a1 48.00  39,746.90  44,125.00    
Petroleum products2    Rs/Litre  Inland Sales  
Rs/Litre    
Mogas  27101919  186,110  186,110  17.88  38.92    
Gas oil 50 ppms  27101950  217,482  217,482  18.85  30.70    
Gas oil 2500 ppms  27101950  n/a1 42,673  17.60  30.20    
Jet A1  27101931  318,182  318,182  18.83  26.83    
Fuel oil HSFO 180 CC  27101969  n/a1 47,573  14.85  15.59    
Fuel Oil HSFO 180 SR  27101969  116,762  116,762  14.45  14.81    
Fuel Oil HSFO 380 SR  27101969  n/a1 124,433  14.66  15.02    
    Rs/Kg  Rs/Kg    
LPG  27111310  74,839  74,839  20.61  10.46 (domestic)  
30.37 (non domestic)    
1 Wheat flour (non -subsidized), Basmati Rice, Gasoil (2500 ppm S) and HSFO 180 CC & HSFO 380 SR are also imported by private parties. The STC do es not 
have the quantities imported by the latter. Information on same could be obtained from the Customs Department.  
2 The STC sells petroleum products to Oil Companies. 
  G/STR/N/18/MUS  
 
- 13 - TABLE II  
STATE TRADING CORPOR ATION  
STATISTICAL INFORMATION, IMPORTS (2019)  
Description of Product(s) including 
HS number(s)  Total Quantity  
imported  Quantity 
imported by STC  Average import/ 
Purchase price  STC sales price to 
wholesalers/distributors  National 
Production  Remarks  
Description  HS Code  MT MT Rs/MT  Rs/MT  MT  
Long Grain White Rice  10064000  n/a1 18,376.08  14,049.67  9,520.00    
Wheat Flour  11010000  n/a1 98,006.03  15,456.32  7,850.00    
Basmati Rice  10063010  n/a1 187.95  41,053.84  44,125.00    
Petroleum products2    Rs/Litre  Inland Sales  
Rs/Litre    
Mogas  27101919  182,927  182,927  17.16  35.25    
Gas oil 50 ppms  27101950  222,058  222,058  18.06  27.40    
Gas oil 2500 ppms  27101950  n/a1 10,753  17.43  No inland sales of  
Gas Oil 2500 in 2019    
Jet A1  27101931  302,680  302,680  18.05  25.72    
Fuel oil HSFO 180 CC  27101969  n/a1 64,378  13.28  14.35    
Fuel Oil HSFO 180 SR  27101969  154,781  154,781  13.09  13.87    
Fuel Oil HSFO 380 SR  27101969  n/a1 144,447  13.35  14.09    
    Rs/Kg  Rs/Kg    
LPG 27111310  78,413  78,413  18.70  9.55 (domestic)  
28.75 (non domestic)    
1 Wheat flour (non -subsidized), Basmati Rice, Gasoil (2500 ppm S) and HSFO 180 CC & HSFO 380 SR are also imported by private parties. The STC do es not 
have the quantities imported by the latter. Information on same could be obtained from the Customs Departme nt. 
2 The STC sells petroleum products to Oil Companies.  
 
__________