G/STR/N/17/MUS  
 
10 January 2019  
(19-0145) Page: 1/12 
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 21 December 2018 is being circulated at the request of the 
delegation of Mauritius.  
 
_______________  G/STR/N/17/MUS  
 
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  1.  AGRICULTURAL MARKETING BOARD (AMB)  
 
I. ENUMERATION OF STATE TRADING ENTERPRISES  
 
A. Identification of state trading enterprises  
 
Agricultural Marketing Board (AMB)  
 
B. Description of products af fected (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;  
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.  
B. Summary of legal basis for granting the relevant exclusive or special rig hts or privileges, 
including legal provisions and summary 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 registe r 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;  
(g) Regulate the standards and quality of Controlled Products.  G/STR/N/17/MUS  
 
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  III. DESCRIPTION  OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operations 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.  
B. Specification of exclusive or special rights or privileges 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 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 should the Board deem fit – 
Section  17 of its act. It can also aut horize 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 
importati on/exportation and conditions 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. Th e import permits need to be endorsed by the AMB.  
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 leve ls. 
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 princi ples, 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 imple ments 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 enterprise is used to fulfil contractual ob ligations 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. Import s are made by AMB except where permits have 
been issued to private importers. The retail selling prices are not controlled. 
  G/STR/N/17/MUS  
 
- 4 - IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I -III) 
TABLE I  
STATE TRADING: AGRIC ULTURAL MARKETING BO ARD 
STATISTICAL INFORMATION,  IMPORTS 2017  
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  7,504  4,312  22,521.38  23,000  2.1 14,124  
0701 1000 Potato seeds  1,533.2  427.5  48,756.09  39,000  (20) N /A 
0703 2000 Fresh whole garlic  1,852  1,852  70,978.50  110,000  55 96 
0910309 Turmeric powder  N/A 6 67,936.19  151,000  122.3  N/A 
0703 1000 Dry whole onions  12,221.75  7,685.75  25,787.18  26,000  0.8 5,134  
0908301 Cardamoms  N/A 1.5 716,712.67  603,000  (15.9)  N/A 
0701331 Bean seeds  N/A 1.75 207,442.63  117,000  (43.6)  N/A 
0703 1000 Onion seeds (kg)  N/A N/A N/A N/A N/A N/A 
 
   
  G/STR/N/17/MUS  
 
- 5 - TABLE I I 
AGRICULTURAL MARKETI NG BOARD  
STATISTICAL INFORMATION, EXPORTS  
Description of product(s) 
(including HS number(s))  Total quantity 
exported  Quantity exported  
by state trading 
enterprise  Average procurement 
price  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 
   
  G/STR/N/17/MUS  
 
- 6 - TABLE III  
AGRICULTURAL MARKETI NG 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  2,153  14,124  3,736*  26,500  
0701 1000 Potato seeds  690 N /A 796* N/A 
0703 2000 Fresh whole garlic  11 96 8* 1,872  
0910309 Turmeric powder  - N/A 5.7**  100 
0703 1000 Dry whole onions  243 5,134  378* 17,000  
0908301 Cardamoms  - N/A 1** 15 
0701331 Bean seeds  - N/A 3.4**  N/A 
0703 1000 Onion seeds (kg)  33 N/A 13* N/A 
* Domestic sales include local produce only.  
** Only imported produce . 
*** Estimates based on sales at AMB and privates.G/STR/N/17/MUS  
 
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  2. STATE TRADING CORPORATION  
 
I. ENUMERATION OF STATE TRADING ENTERPRISES  
 
A. Identification of state trading enterprises  
 
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. White Oil  
 
(i) Motor Gasoline  
(ii) Gasoil 50 ppms  
(iii) Gasoil 2500 ppms  
(iv) Kerosene/DPK  
 
B. Black Oil  
 
(i) 180 HSFO Catalytic Crack  
(ii) 180 HSFO Straight Run  
(iii) 380 HSFO Straight Run   
 
 
 
27101919  
27101950  
27101950  
27101931  
 
 
 
27101969  
27101969  
27101969   
 
 
 
Sole Importer  
Sole Importer  
Importer  
Sole Importer  
 
 
 
Sole Importer  
Sole Importer  
Importer  
4 Liquefied Petroleum Gas  27111300  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 mar keting  
(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 as may be authorized by the Minister.  
Items (b) and (d) are not presently being dealt with by the STC.  
 
The State Trading Corporation was created to regulate and rationalize trade, particularly in 
relation to essential commodities.  
 G/STR/N/17/MUS  
 
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  B. Summary of legal basis for granting the relevant exclusive or special ri ghts or privileges, 
including legal provisions and summary 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 governme nt, 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 or ganization. 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 tha t 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 commercial principles". The Bo ard 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.  
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING CORPORATION  
 
A. Summary statement providing overview of operations of the State Trading Corporation  
 
Petroleum Products  
 
STC had been procuring the country's requirement for petroleum products through ann ual open 
tender. Since 1 August 2006 to date, STC has not launched tenders for Petroleum products. Following 
high-level discussions at Government level, STC entered into a long 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 FOB contract lasted until 31 July 2010 and was renewed as follows:  
 
a) Three -year period from 1 August 2010 to 31 July 2013  
b) Three -year period from 1 August 2013 to 31 July 2016 
c) Three -year period from 1 August 2016 to 31 July 2019  
 
STC imports 10 0% of the country's demand for petroleum products (HS code as per Part  I b) in bulk 
for domestic usage. Since January 2014, the importation of Gasoil 2500 ppms and HSFO 380 SR has 
been partially liberalized. The seven grades of Petroleum products are imported and sold to the four 
privately owned local oil companies, which own storage tanks and ensure distribution.  
 
Long Grain White Rice  
 
The State Trading Corporation imports 10 0% of the country's requirements for subsidized rice 
(5% broken) on C&F basis; insure the cargo in Mauritius. The rice is received in STC's warehouse 
and from there sold to wholesalers at subsidized prices. Moreover, STC has appointed 
packers/distributers to ensur e distribution of these products all -round the island.  
 
Flour  
 
The State Trading Corporation annually launches the tender of 5 0% 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 5 0% to STC, at the best bid price obtained during the annual tender 
exercise. Flour is sold from STC stores to wholesalers and bakers at subsidized prices. Moreover, 
STC has appointed packers/distributers to ensure distribution of  these products all -round the island.  
 
Basmati Rice  
The State Trading Corporation started to import basmati rice during the last quarter of 2013 with a 
view to manage the abusive price increases of basmati rice commercialized by more than fifty private G/STR/N/17/MUS  
 
- 9 - 
 
  importers on the local market. Presently, the STC is selling its basmati 1121 mainly to wholesalers 
as well as to the public. All consignments of basmati rice are analyzed prior to shipment in country 
of origin and also by the Mauritius Standard Bureau in Mau ritius so as to ensure a good and 
consistent quality standard.  
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 L td and Total Mauritius Ltd. 
The local oil companies own storage tanks and ensure distribution.  
B. Specification of exclusive or special rights or privileges 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 (except for Gasoil 2500 ppms and HSFO 380  SR which 
have been partially liberalized) 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 traders 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.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Private Trader s are allowed to import long grain rice on equal terms as those of STC. However, the 
sale of "ration" rice is subsidized 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.  
D. How import/export levels are established by the state trading enterprise  
STC, together with the petroleum companies, determines the quantity of petroleum products 
(including LPG) to be imp orted on a yearly basis. Whilst for Rice and Flour, the domestic demand 
situation is taken into consideration while determining quantity to be imported. STC launches 
Request for Quotation (RFQ) for rice. When prices are low on the international market, it buys more 
rice and when the price is high, it buys less.  
E. How export prices are determined  
Not applicable.  
F. How the resale prices of imported products are determined  
Resale prices for rice and flour are determined by the Ministry of Industry, Commerce and Consumer 
Protection (Commerce Division) for all inland sales to wholesalers, distributors and bakers. Resale 
prices for Mogas and Gasoil (50  ppms) used on the domesti c market are determined by the 
Petroleum Pricing Committee (PPC). For products sold for International market like Jet A1, Gasoil 
Bunker and Fuel Oil Bunker, those are determined by STC.  
G. Whether long -term contracts are negotiated by the state trading ent erprise. Whether the state 
trading enterprise is used to fulfil contractual obligations entered into by the government  
Please refer to section III. A. Petroleum Products.  
Yes, STC fulfills the contractual obligations entered into by the Government, wheneve r applicable. 
STC has recourse to bidding exercises.  G/STR/N/17/MUS  
 
- 10 - 
 
  H. Market structure  
No. Products  Market Structure  
1 Long Grain White rice  Imperfect competition - the market situation is such that element of 
monopoly (subsidy on "ration " rice) allows STC to exercise control over 
market prices.  
2 Wheat Flour (White Wheat and 
Brown Bread Flour)  Monopoly on Subsidized flour only.  
Special types of Flour are imported by private  parties.  
3 Petroleum Products  
 
A. White Oil  
 
(i) Motor Gasoline  
(ii) Gasoil 50 ppms  
(iii) Gasoil 2500 ppms  
(iv) Kerosene/DPK  
 
B. Black Oil  
 
(i) 180 HSFO Catalytic Crack  
(ii) 180 HSFO Straight Run  
(iii) 380 HSFO Straight Run   
 
 
 
Monopoly  
Monopoly  
Liberalized (STC and Oil companies import the product)  
Monopoly  
 
 
Monopoly  
Monopoly  
Liberalized (STC and Oil companies import the product)  
4 Liquefied Petroleum Gas  Monopoly  
5 Basmati rice  Perfect competition - the market situation is such that there are presently 
more than 50 importers of  Basmati rice having small market shares. 
Moreover, these importers (including STC) sell Basmati Rice and prices are 
influenced by the international market.  Finally, there are free entry and exit 
to the  market.   
  G/STR/N/17/MUS  
 
- 11 - IV. STATISTICAL INFORMATION  
TABLE I  
STATE TRADING CORPOR ATION  
STATISTICAL INFORMATION, IMPORTS (2016)  
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)  Remarks  
Description  HS Code    
Rs/MT (C&F)  Rs/Mt  
 
Long Grain White Rice  10064000  20,826  20,826  13,095  10,100  n/a  
Wheat Flour  11010000  n/a NIL NIL 11,100  n/a  
Basmati Rice  10063010  n/a 325 37,716  42,273  n/a  
Petroleum products    
 Rs/Litre  Inland Sales 
Rs/Litre   
 
Mogas  27101919  167,780  167,780  13.52  30.27  n/a Excl. VAT 
Gas oil 50 ppms  27101950  210,169  210,169  13.01  22.34  n/a Excl. VAT 
Gas oil 2500 ppms  27101950  n/a 62,209  9.19 23.83  n/a Excl. VAT 
Kerosene/DPK  27101931  286,206  286,206  12.73  35.07  n/a Excl. VAT 
Fuel oil HSFO 180 CC  27101969  53,208  53,208  8.50 9.62 n/a Excl. VAT 
Fuel Oil HSFO 180 SR  27101969  89,027  89,027  8.35 9.06 n/a Excl. VAT 
Fuel Oil HSFO 380 SR  27101969  n/a 208,654  8.40 8.75 n/a Excl. VAT    
 Rs/Kg  Rs/Kg   
 
LPG 27111390  74,871  74,871  16.10  14.76 (domestic)  
23.86 (non-domestic ) n/a  
N.B. - Wheat flour (non -subsidized), Basmati Rice, Gasoil (2500 ppms) and Fuel Oil 380 SR are also imported by private parties. STC do not have the q uantities imported by them. 
Information on same could be obtained from customs department.  
NOTE: STC sells : (i)  Petroleum products to Oil Companies (Vivo, Total, Engen & Indian Oil) and CEB.  
 
     (ii)  LPG to Oil Companies (Vivo & Total only).  
  
  G/STR/N/17/MUS  
 
- 12 - STATE TRADING CORPOR ATION  
STATISTICAL INFORMATION, IMPORTS (2017)  
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)  Remarks  
Description  HS Code    Rs/MT (C&F)  Rs/Mt    
Long Grain White Rice  10064000  18,810  18,810  13,583  10,067  n/a  
Wheat Flour  11010000  n/a Nil Nil 9,472    
Basmati Rice  10063010  n/a 217 36,688  43,406  n/a  
Petroleum products     Rs/Litre  Inland Sales  
Rs/Litre    
Mogas  27101919  173,862  173,862  14.96  33.96  n/a Excl. VAT 
Gas oil 50 ppms  27101950  207,962  207,962  13.60  25.66  n/a Excl. VAT 
Gas oil 2500 ppms  27101950  n/a 56,431  9.00 24.74  n/a Excl. VAT 
Kerosene/DPK  27101931  312,189  312,189  13.48  39.05  n/a Excl. VAT 
Fuel oil HSFO 180 CC  27101969  49,217  49,217  11.15  12.58  n/a Excl. VAT 
Fuel Oil HSFO 180 SR  27101969  127,199  127,199  11.56  12.10  n/a Excl. VAT 
Fuel Oil HSFO 380 SR  27101969  n/a 151,676  11.60  12.19  n/a Excl. VAT 
    Rs/Kg  Rs/Kg    
LPG 27111390  73,436  73,436  18.80  11.76 (domestic)  
28.64  (non-domestic ) n/a  
N.B. - Wheat flour (non -subsidized), Basmati Rice, Gasoil (2500 ppms) and Fuel Oil 380 SR are also imported by private parties. STC do not have the q uantities imported by them. 
Information on same could be obtained from customs department.  
 
NOTE: STC sells :  (i) Petroleum products to Oil Companies (Vivo, Total, Engen & Indian Oil) and CEB.  
     (ii) LPG to Oil Companies (Vivo & Total only).  
 
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