STO Announces Plans for Local Food Cultivation to Reduce Import Costs

The State Trading Organisation (STO) has unveiled plans to cultivate food products within the Maldives as part of a long-term strategy to reduce import costs and ease reliance on foreign currency.

Speaking at a press conference on Thursday, STO Managing Director Shimad Ibrahim said the initiative is aimed at stabilising food prices while building local production capacity. “In the short run, we have to import these items. But in the long run, we will grow them in different parts of the Maldives,” Shimad said, adding that the country spends around USD 12 million annually on onion imports alone.

As an immediate price control measure, STO has begun selling imported oranges at MVR 35 per kilogram. Apples and oranges are also expected to be available in STO supermarkets from next week. The move follows President Dr Mohamed Muizzu’s announcement on Wednesday that STO will import 10 types of fruits and 10 types of vegetables in bulk, with imports to be determined annually based on demand and volumes brought into the country.

Shimad noted that STO’s imports are not government-subsidised, but under an agreement with the administration, the company will launch the new food products before 15 October. The specific list of fruits and vegetables to be imported has not yet been disclosed.

He further explained that STO typically intervenes in the market when staple food prices rise, citing recent increases in onion, salt, and coconut prices. According to him, prices tend to stabilise once STO releases stocks into circulation.

The cultivation initiative marks STO’s latest effort to enhance food security and reduce the Maldives’ dependency on foreign suppliers, a step the company views as critical for long-term economic resilience.