G/STR/N/14/MUS  
G/STR/N/15/MUS  
 
1 October 2014  
(14-5493)  Page: 1/8  
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE 
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON 
THE INTERPRETATION OF ARTICLE XVII 
MAURITIUS  
The following communication, dated 8 September 2014,  is being circulated at the request of the 
Delegation of Mauritius. 
 
_______________ 
 
 
1  AGRICULTURAL MARKETING BOARD (AMB) 
1.1  Enumeration of State Trading Enterprises 
1.1.1  Identification of State Trading Enterprise 
Agricultural Marketing Board (AMB) 
 
1.1.2  Description of  products affected 
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.  
 
1.2  Reason and purpose 
1.2.1  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; 
iv. To operate its installations and other resources with maximum efficiency for the 
benefit of producers and consumers; 
v. To regulate standards and quality of products falling under its control. G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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  1.2.2  Summary of legal basis for granting th e relevant exclusive or special rights of 
privileges, including legal provisions and summa ry of statutory or constitutional powers 
i. Mauritius Agricultural 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 measures as it considers necessary to stabilize, augment or reduce the 
production or prices of controlled products; 
g. Regulate the standards and quality of Controlled Products. 
1.3   Description of the functionin g of the State Trading Enterprise 
1.3.1  Summary statement providing overvi ew of operation 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; 
c. Implementing a pricing policy based on cross-subsidization of local and imported 
produce to the best advantage of both producers and consumers . 
1.3.2  Specification of exclus ive or special rights or pr ivileges enjoyed by the State 
Trading Enterprise  
a. By virtue of its Controlled Products, AMB controls the import of onions, garlic, potatoes, 
onion seeds, garlic seeds, potato seeds an d by-catch fish and markets onions, garlic, 
potatoes, onion seeds, garlic seeds and potato seeds. 
b. The right to surrender any of the Controlled Products should 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. 
1.3.3   Type of entities other than the St ate Trading Enterprise that are allowed to 
engage in importation/exportation and condition for participation 
Any company, partnership or trader may import such commodities which though controlled by 
AMB, as permitted from time to time by AMB e.g. table potatoes, onions, onion seeds, garlic seeds 
and potato seeds. The import permits need to be endorsed by the AMB.  
1.3.4  How imports/exports levels are esta blished by the State Trading Enterprise 
Imports/exports are supplements to local production whenever the estimated yearly production 
forecasts are below/above consumption levels. G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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1.3.5  How export prices are determined 
Export prices are selling prices of local products, plus administrative clearance fees and related 
custom charges .  
 
1.3.6  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. 
 1.3.7  Whether long-term contracts are nego tiated by the State Trading Enterprise. 
Whether the State Trading Enterprise 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 retail selling prices are not controlled. 
 
1.4  Statistical information (See attached tables I - III) 
TABLE I 
STATE TRADING: AGRICULTURAL MARKETING BOARD 
STATISTICAL INFORMATION, IMPORTS- 2013 
Description of 
product(s) (including HS number(s)) Total 
quantity imported Quantity 
imported by state trading enterprise Average 
import price Average 
representative domestic sales price Mark-up National 
production 
1 2 3 4 5 6 7 
 Tonnes Tonnes Rs/Tonne Rs/Tonne % Tonnes 
0701 9000 Fresh whole potatoes 5,005.85 3,045.85 18,400 20,562.37 11.75 16,451 
0701 1000 
Potato seeds 1,629.89 879.89 33,823 43,798.24 29.49 682 
0703 2000 
Fresh whole garlic 1,570 1,570 64,910 108,564.63 67.25 107 
0910301 
Turmeric 
finger N/A 90 35,571 125,001.12 251.41 N/A 
0910309 
Turmeric powder N/A 90 38,328 156,297.7 307.79 N/A 
0703 1000 
Dry whole onions 8,680 4,312 18,605 25,560.38 37.38 7,772 
0908301 
Cardamoms N/A 15 369,627 958,661.62 159.36 N/A 
0701331 
Bean seeds N/A 7.5 155,543 200,044.44 28.61 N/A 
0703 1000 
Onion seeds (kg) - - - 5,678.95 
(Rs/kg) - N/A G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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  TABLE II 
AGRICULTURAL MARKETING BOARD 
STATISTICAL INFORMATION, EXPORTS 
Description 
of product(s) (including HS number(s))  Total 
quantity imported1 Quantity 
imported by state trading enterprise1  Average 
procurement price2  Average 
representative domestic sales price  Average 
export price National 
production 
1 2 3 4 5 6 7 
 Tonnes Tonnes Rs/Tonne Rs/Tonne Rs/Tonne Rs/Tonne 
Nil 
TABLE III 
AGRICULTURAL MARKETING BOARD  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
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 4,046 16,451 8,066.7* 26,500 
0701 1000 Potato 
seeds 682 682 1,162* N/A 
0703 2000 Fresh 
whole garlic - 107 1,574.2** 1,575 
0910301 Turmeric 
finger - N/A 89.5** 100 
0910309 Turmeric 
powder - N/A 94.8** 100 
0703 1000 Dry 
whole onions 709.02 7,772 5,500.5* 17,000 
0908301 
Cardamoms - N/A 14.2** 15 
0701331 Bean 
seeds - N/A 4.5** N/A 
0703 1000 Onion 
seeds (kg) 573kg N/A 1,071 kg* N/A 
* Domestic sales include both local and imported produce  
** Only imported produce *** Estimates based on sales at AMB and privates  
 
2  STATE TRADING CORPORATION 
2.1  Enumeration of State Trading Enterprises 
2.1.1  Identification of State Trading Enterprise 
State Trading Corporation (STC) 
 G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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  2.1.2  Description of  products affected 
No Products H.S. Code Nature of exclusivity, Special Rights, or 
privileges 
1 Rice ( ≈ 5% Broken) 10064000 Sole importer of subsidized Rice 
2 Wheat Flour 11010000 Sole Importer of subsidized Flour 
3 Petroleum Products 
A. White Oil 
(i) Motor Gasoline (ii) Gasoil 0.005 (iii) Gasoil 0.25 (iv) Kerosene/DPK  B. Black Oil  (i) 180 Catalytic Crack (ii) 180 Straight Run (iii) 380 Straight Run  
 
27101919 2710950 2710950 27101931    27101960 27101960 27101960  
 
Sole Importer Sole Importer Sole Importer Sole Importer    Sole Importer Sole Importer Sole Importer 
4 Liquefied Petroleum Gas 27111300 Sole Importer 
 
2.2  Reason and purpose 
2.2.1  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 
d. to export goods, and 
e. to engage in such other activities as may be authorized by the Minister. 
Items (b) and (d) are not presently being dealt with by STC. 
 
The State Trading Corporation was created to regulate  and rationalize trade, particularly in relation 
to essential commodities.  
2.2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry of statutory or constitutional powers 
The State Trading Corporation was created by an Act of Parliament on 8 October 1982. It took 
over the activities of the Department of Supplies of the government, which was responsible for the 
importation and distribution of rice and wheat flour.  
The Corporation status was envisaged to give 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 State Trading Corporation, the Government of 
Mauritius 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 main guiding principle of the Corporation is that it "shall in 
carrying out its objectives operate on sound co mmercial principles". The Board of Directors 
comprising representatives both from the public sector and experienced businessmen from the 
private sector, with extensive powers to administer  the Corporation is to confer a high degree of 
autonomy so vital to a commercial concern.  G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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  2.3  Description of the functionin g of the State Trading Corporation 
2.3.1  Summary statement providing overvi ew of operations of the State Trading 
Enterprise  
Petroleum Products 
 
STC had been procuring its Petroleum Products through annual open tender process. Following 
high-level discussions at Government level, STC entered into longer term negotiated contract of 
supply on FOB basis in respect of each category of product with Mangalore Refinery and 
Petrochemicals limited.  The initial three-year contract lasted until July 2010. It was renewed for 3 years to end July 2013 
and further renewed for three more  years ending September 2016. 
 STC imports 100% of the country's demand for petroleum products (HS code as per Part I b) in 
bulk The seven grades of Petroleum products are shipped on a dedicated tanker namely Red Eagle 
and are sold to the four privately owned local oil companies, from the vessel's flange. The local oil companies own storage tanks and ensure distribution. 
 
Rice  The State Trading Corporation imports 100% of th e country's requirements for subsidized rice 
(5-10% broken) on C&F basis; insure the cargo in Mauritius. The rice is received in STC's 
warehouse and from there sold to wholesalers.  
Flour 
 The State Trading Corporation annually launches the tender of 50% of the country's demand for 
flour. The Government has guaranteed the local milling company since it came into operation 
in 1989, the supply of the other 50% to STC, at the best bid price obtained during the annual 
tender exercise. Flour is sold from STC stores to wholesalers and bakers.  
Liquefied Petroleum Gas 
 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 Ltd and Total Mauritius 
Ltd. The local oil companies own stor age tanks and ensure distribution. 
 
Cement 
 Since 1 July 2011, importation of Cement was liberalized on the domestic market.  
2.3.2  Specification of exclus ive or special rights or pr ivileges enjoyed by the State 
Trading Enterprise 
The exclusive or special rights or privileges enjoyed by the State Trading Corporation are in 
respect of being sole importer of petroleum products and LPG. The Corporation pays all the 
necessary dues that are payable to the Port Authority, Custom Department/and other authorities at the prescribed rates applicable to all trad ers for these products. STC does not enjoy any 
concessionary rates in the discharge of its activities. However, STC does benefit from an 
exemption of 15% custom duty on importation of wheat flour.  2.3.3  Type of entities other than the St ate Trading Enterprise that are allowed to 
engage in importation/exportation and condition for participation 
Private Traders are allowed to import long grain rice on equal terms as that of STC. However, the 
sale of "ration" rice is subsidised by Government through the STC. In respect of the importation of 
wheat flour, private traders are allowed to import wheat flour subject to payment of 15% custom 
duty compared to STC which is exempted.  G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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  2.3.4  How imports/exports levels are esta blished by the State Trading Enterprise 
STC, together with the petroleum companies, determines quantity of petroleum products 
(including LPG) to be imported based on yearly  basis. Whilst for rice and flour, the domestic 
demand and international price situation are taken into consideration while determining quantity to 
be imported. 
 2.3.5  How export prices are determined 
Not applicable. 
 2.3.6  How the resale prices of imported products are determined 
Resale prices are determined by the Ministry of Industry and Commerce for all inland sales to 
wholesalers, distributors and bakers. 
 2.3.7  Whether long-term contracts are nego tiated by the State Trading Enterprise. 
Whether the State Trading Enterprise is used  to fulfil contractual obligations entered 
into by the government 
Long-term contracts are negotiated through high-level discussions at Government level. 
 
2.3.8  Market Structure 
 Product Market structure 
Petroleum products 
a. White oil Monopoly (100%) 
b. Black oil 
LPG Monopoly (100%) 
 
Flour Monopoly (more than 30% of flour supplied to the 
domestic market by STC) 
 
Rice (≈ 5% Broken) Imperfect competition G/STR/N/14/MUS • G/STR/N/15/MUS 
 
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  2.4  Statistical information 
TABLE I 
STATE TRADING COORPORATION 
STATISTICAL INFORMATION, IMPORTS (2012) 
 
STATE TRADING COORPORATION 
STATISTICAL INFORMATION, IMPORTS (2013) 
Description of Product (s) including 
HS number(S) Total 
Quantity 
imported 
(Metric Ton) Quantity 
imported by 
STC (Metric 
Ton) Average 
import price STC sales 
price to 
wholesalers/ 
distributors National 
Production 
(Metric Ton) 
Description HS Code Rs/MT (C&F) Rs/Mt 
Rice (5-10% Broken) 10064000 19,606  13,470 9,980 N/A 
Wheat Flour 11010000 4,333 4,333 16,088 11,000 97,588 
Petroleum products    Rs/Litre Rs/Litre  
Mogas 27101919 138225 138225 24.64 50.74 N/A 
Gas oil 0.005 2710950 202183 202183 25.60 42.46 N/A 
Gas oil 0.25 2710950 136018 136018 24.80 25.32 N/A 
DPK 27101931 241808 241808 24.69 25.55 N/A 
Fuel oil 180 CC 27101960 199805 199805 19.06 20.01 N/A 
Fuel Oil 180 SR 27101960 100678 100678 18.62 18.93 N/A 
Fuel Oil 380 SR 27101960 128732 128732 18.97 19.26 N/A 
    Rs/Kg Rs/Kg  
LPG 27111300 68,224  68,224  30.99 17.25 N/A 
__________  Description of Product (s) 
including HS number(S) Total Quantity 
imported (Metric 
Ton) Quantity imported 
by STC (Metric 
Ton) Average import 
price STC sales 
price to 
wholesalers/di
stributors National 
Production 
(Metric Ton)  
Description HS Code   Rs/MT (C&F) Rs/Mt  
Rice (10-15% Broken) 10064000 18,960 18,960 13,850 9,980 N/A 
Wheat Flour 11010000 1,981 1,981 13,875 11,000 98,110 
Petroleum 
products    Rs/Litre Rs/Litre  
Mogas 27101919 128,125 128,125 25.12 47.79 N/A 
Gas oil 0.005 2710950 204,157 204,157 25.93 39.71 N/A 
Gas oil 0.25 2710950 111,570 111,570 24.66 24.92 N/A 
Kerosene/DPK 27101931 218,334 218,334 24.81 25.57 N/A 
Fuel oil 180 CC 27101960 202,549 202,549 20.57 21.02 N/A 
Fuel Oil 180 SR 27101960 76,887 76,887 19.46 19.69 N/A 
Fuel Oil 380 SR 27101960 125,651 125,651 19.89 20.14 N/A 
   Rs/Kg Rs/Kg  
LPG 27111300 67,893 67,893 32.15 17.25 N/A