Ameer: Food imports via STO is not food security, businesses will bankrupt

The State Trading Organization (STO) being entrusted with importing fruits and vegetables into Maldives does not ensure food security, former Finance Minister Ibrahim Ameer said on Wednesday.

President Dr. Mohamed Muizzu on Wednesday posted on X that the Cabinet has decided to make changes to implement his policy to establish food security in Maldives.

Beyond general food staples, the STO will now undertake bulk imports of 10 commonly consumed fruits and 10 vegetables, as well as lentils, eggs, and potatoes, for distribution in the Maldivian market.

???? އިއްޒަތްތެރި ރައީސް. ތިއަށް ފުޑް ސެކިއުރިޓީ އޭ ނުކިޔާނެ. ފުޑް ސެކިއުރިޓީ އަށް ވާނީ ތި ފާހަގަ ކުރި ބާވަތްތައް ރާއްޖޭގައި ހެއްދުމުން. މިހާރު ތި ކުރެވޭ ކަމަކީ އަމިއްލަ ފަރުދުންގެ ވިޔަފާރިއަށް ވަދެވެނީ. https://t.co/VjSGZGlsXl

— Ibrahim Ameer ???????? (@iameeru) September 10, 2025

In a social media post, Ameer argued that entrusting food supply to STO does not equate to food security. True food security, he emphasized, involves cultivating imported crops locally in the Maldives. He also noted that, following a recent cabinet decision, the government-owned STO is now venturing into markets traditionally dominated by private businesses.

Speaking to Sun, Ameer explained that STO would use funds forcibly collected by the government from private businesses and tourists to import fruits and vegetables. This revenue is channeled to state entities like STO for such imports, he said.

Ameer warned that this policy could severely impact private businesses, potentially leading to closures.

He further clarified that measures aimed at reducing food prices have no bearing on genuine food security, which means avoiding reliance on other countries during disasters.

It is common for STO to import items in bulk to lower prices for essential goods. For instance, amid rising market prices, STO recently began importing coconuts in large quantities. Similarly, with apples and oranges becoming more expensive, STO has started selling oranges at MVR 35 per kg.

Historically, governments, particularly during Ramadan, have utilized STO imports to curb inflationary pressures on food prices.

The current market-wide price inflation, affecting numerous goods including food items, is primarily attributed by traders to the appreciating cost of foreign currency for imports. The black market exchange rate for the US dollar, previously around MVR 16, has now sustained above MVR 20 for several weeks.