G/STR/N/16/MUS  
 
21 June 2016  
(16-3362)  Page: 1/11  
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 16 June 2016, is being circulated at the request of the 
Delegation of Mauritius. 
 
_______________ G/STR/N/16/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 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; 
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 releva nt exclusive or special rights 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 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; 
(g) Regulate the standards and quality of Controlled Products. G/STR/N/16/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 righ ts 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 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 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.  
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 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 produc e 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.   
  G/STR/N/16/MUS  
 
- 4 - IV. STATISTICAL INFORMATION (S EE ATTACHED TABLES I-III) 
 
TABLE I 
STATE TRADING: AGRICULTURAL MARKETING BOARD 
STATISTICAL INFORMATION, IMPORTS - 2014 
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 5,992 2,380 22,177 24,000 8.2 19,404 
0701 1000 Potato seeds 1,248 759 39,681 43,000 8.4 716 
0703 2000 Fresh whole garlic 1,680 1,680 65,000 110,000 69.2 161 
0910309 Turmeric powder N/A 23 45,284 85,000 87.7 Neg. 
0703 1000 Dry whole onions 10,822 6,227 25,304 24,000 (5.2) 5,912 
0908301 Cardamoms N/A NIL NIL 492,000 N/A Neg. 
0701331 Bean seeds N/A 4 160,002 200,000 24.9 Neg. 
0703 1000 Onion seeds (kg) N/A N/A N/A 5,146 N/A N/A 
 
 
TABLE II 
AGRICULTURAL MARKETING BOARD 
STATISTICAL INFORMATION, EXPORTS 
Description of product(s) 
(including HS number(s)) Total quantity 
exported1 Quantity exported 
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/T onne Rs/Tonne Rs/Tonne 
Nil 
  
  G/STR/N/16/MUS  
 
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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 1,973 19,404 3,579 26,500 
0701 1000 Potato seeds 716 716 665 N/A 
0703 2000 Fresh whole garlic N/A 161 34 1,700 
0910309 Turmeric powder - N/A N/A N/A 
0703 1000 Dry whole onions 1,021 5,912 925 17,000 
0908301 Cardamoms - N/A N/A 15 
0701331 Bean seeds N/A N/A N/A N/A 
0703 1000 Onion seeds (kg) 394 kg N/A 168 N/A 
* Domestic sales include local produce only. 
** Only imported produce. 
*** Estimates based on sales at AMB and privates.  G/STR/N/16/MUS 
 
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  2.  STATE TRADING ENTERPRISE 
 I. ENUMERATION OF STATE TRADING ENTERPRISES 
 
A. Identification of state trading enterprises 
State Trading Corporation 
B. Description of products affected (including  tariff item number(s) encompassed in product 
description) 
No. Products H.S. 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 
2710950 2710950 
27101931 
   
27101969 27101969 27101969  
   Sole Importer Sole Importer Importer Sole Importer    Sole Importer Sole Importer Importer 
4 Liquefied Petroleum Gas 27111390 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 
(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 regu late and rationalize trade, particularly in 
relation to essential commodities.  
B. Summary of legal basis for granting the releva nt exclusive or special rights 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 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. 
 G/STR/N/16/MUS 
 
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  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 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.  
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 annual open tender. Since 1 August 2006 to date, STC is NOT launching tenders for Petroleum products.  
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 i nitial three-year contract lasted until 31 July 2010. It was renewed for 3 years to end 
31 July  2013 a nd further renewed for three more years ending 31 July 2016 . 
 
STC imports 100 per cent 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 partly liberalized. The seven grades of Petroleum products are imported 
and sold to the four privately owned local oil companies. The local oil companies own storage tanks 
and ensure distribution.  
Long Grain White Rice 
 The State Trading Corporation imports 100 per cent of the country's requirements for subsidized 
rice (5-10 per cent 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. In addition, STC has a 
sales unit which sells Long Grain White Rice and flour in small packets to retailers. Moreover, STC's personnel and transport ensure distribution of these products all-round the island.  
 
Flour  
The State Trading Corporation annually launches the tender of 50 per cent 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 per cent 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 . In addition, STC has a sales unit which sells Long Grain White Rice and flour in small 
packets to retailers. Moreover, STC's personnel and transport ensure distribution of these products 
all-round the island. 
 
Basmati Rice  
The State Trading Corporation (STC) 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 importers on the local market. Two grades of basmati rice were procured through 
tender exercise and successfully launched on the market under STC brand in January 2014 at a 
very competitive price. All consignments of basmati rice are analyzed prior to shipment in country of origin and also by the Mauritius Standard Bureau in Mauritius so as to ensure a good and consistent quality standard. STC sells its basm ati rice mainly to public, supermarkets and 
wholesalers who ensure distribution across Mauritius. 
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. G/STR/N/16/MUS 
 
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  Cement 
Since 1st July 2011, importation of Cement was liberalized on the domestic market. STC is no 
longer engaged in the importation of cement. 
B. Specification of exclusive or special righ ts 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 partly liberalized) and LPG. The Corporation pays all the necessary dues 
that are payable to the Port Authority, Custom De partment/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 Traders are allowed to import long grain rice on equal terms as that 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 quantity of petroleum products 
(including LPG) to be imported on 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 and Commerce for all 
inland sales to wholesalers, distributors and bakers. Resale prices for Mogas and Gasoil (2500 ppms) used on the domestic market are determined by the Petroleum Pricing Committee 
(PPC). For products sold for International market like Jet A1, Gasoil Bunker and Fuel Oil Bunker 
are determined by STC by adding a margin on the CIF prices. 
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 
Yes, STC fulfills the contractual obligations entered into by the Government, whenever applicable. 
STC has recourse to bidding exercises. G/STR/N/16/MUS 
 
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  H. Market structure 
No. Products Market Structure 
1 Long Grain White rice Imperfect competition - the market situation is such 
that element of monopoly (subsidy) allows STC to 
exercise control over market prices. 
2 Wheat Flour (White Wheat and 
Brown Bread Flour) Monopoly on Subsidized flour only. 
Special type 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 
having small market shares. Moreover, these importers (including STC) sell same product and prices are influenced by the international market. Finally, there 
are free entry and exit to the market.  
  
  G/STR/N/16/MUS  
 
- 10 - IV. STATISTICAL INFORMATION 
TABLE I 
STATE TRADING CORPORATION 
STATISTICAL INFORMATION, IMPORTS (2014) 
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 19,748 19,748 13,378 9,980 n/a  
Wheat Flour  11010000 n/a 2,537 13,302 11,000 99,310  
Basmati Rice 10063010 n/a 2,238 44,936 45,500 n/a  
Petroleum products    Rs/Litre Rs/Litre   
Mogas 27101919 137,882 137,882 22.95 40.78 n/a Excl VAT 
Gas oil 50 ppms 2710950 187,375 187,375 23.42 33.68 n/a Excl VAT 
Gas oil 2500 ppms 2710950 n/a 69,280 23.98 24.19 n/a Excl VAT 
Kerosene/DPK 27101931 232,181 232,181 22.71 23.96 n/a Excl VAT 
Fuel oil HSFO 180 CC 27101969 125,366 125,366 18.15 18.75 n/a Excl VAT 
Fuel Oil HSFO 180 SR 27101969 91,817 91,817 16.89 17.22 n/a Excl VAT 
Fuel Oil HSFO 380 SR 27101969 n/a 170,712 17.4 17.66 n/a Excl VAT 
    Rs/Kg Rs/Kg   
LPG 27111390 70,552 70,552 28.47 17.25 (domestic) 
35.44 (non-domestic)  n/a  
  
  G/STR/N/16/MUS  
 
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STATE TRADING CORPORATION 
STATISTICAL INFORMATION, IMPORTS (2015) 
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 20,567 20,567 13,656 9,980 n/a  
Wheat Flour  11010000 n/a Nil Nil 11,000 101,322  
Basmati Rice 10063010 n/a 881 43,996 41,750 n/a  
Petroleum products    Rs/Litre Rs/Litre   
Mogas 27101919 154,724 154,724 16.31 35.63 n/a Excl VAT 
Gas oil 50 ppms 2710950 204,231 204,231 16.09 28.23 n/a Excl VAT 
Gas oil 2500 ppms 2710950 n/a 100,774 15.15 15.54 n/a Excl VAT 
Kerosene/DPK 27101931 271,290 271,290 15.51 16.70 n/a Excl VAT 
Fuel oil HSFO 180 CC 27101969 68,694 68,694 11.73 12.65 n/a Excl VAT 
Fuel Oil HSFO 180 SR 27101969 99,374 99,374 10.53 10.83 n/a Excl VAT 
Fuel Oil HSFO 380 SR 27101969 n/a 228,754 11.03 10.98 n/a Excl VAT 
    Rs/Kg Rs/Kg   
LPG 27111390 72,458 72,458 19.§34 17.25 (domestic) 
26.14 (non-domestic) n/a  
N.B. - Wheat flour (non-subsidized), Basmati Rice, Gasoil (2500 ppm s) and Fuel Oil 380 SR are also imported by private parties.  STC do not have the quan tities imported by them. 
Information on same could be ob tained from customs department. 
 
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