In 2016, price of goods in Maldivian markets increased at various levels depending on the type of product. There were no price decreases in any major categories.
However, price of goods imported by STO did not increase. On the contrary, STO reduced prices from some types of products. Those include products like milk which people often consume.
In Ramadan, the price of products are controlled and people receive products at an affordable price. This is evidence that, if STO does not provide goods at affordable rates, the price of goods will rise in the market significantly.
Usually STO does not import goods that are usually available in the market. However, to control the prices during Ramadan STO imports staple food items and some other basic products as well and provide it at affordable prices to the people.
During these periods, if STO runs out of any good, the price that good rises in the market. Also, when STO stops importing after Ramadan ends, the price continues to rise till a certain time.
So, this shows how important the services of STO are to the people of Maldives. They are serving the people without any profits. In addition to the developmental projects conducted by the government, even private individuals conduct various infrastructure development projects. If the supply of construction aggregate by STO is reduced at any time, the price of aggregate in the markets rise. STO is providing such products to construction companies in an easy manner. Construction companies have stated that the companies are experiencing growth after a long time.
If we look at fuel prices, fuel is the cheapest in Maldives in the whole region. This is provided by STO and the people of Maldives benefit from this. In addition to the fisheries industry, the tourism industry also benefit from this.
STO has the capacity to import anything they want, however more than 80 percent of the products in STO markets are bought from other importers. So, this shows that STO wants to give opportunity for other importers to grow.
If we look at social services, there is no area where we cannot see STO’s participation and contribution. STO keeps increasing their spending on various social programs year by year. Hence it is no reason to worry when the profits of STO reduce by a small amount. Those who are worried about this are actually worried about the various services STO is providing to the people at affordable prices.
It was President Yameen who decided that state owned companies should focus more on providing services at affordable rates rather than making huge profits. When the President announced his decision on the 50th anniversary of STO, STO has been following his recommendations since then. STO is fulfilling the purpose of the creation of STO. STO provides the highest rate of returns to the shareholders and it is evidence that STO is able to achieve their goals.