STC further details its importation challenges while it strives to maintain availability and quality |31 January 2022

(L to r) Mr Sharma, Ms Robert and Mr Jean-Baptiste during the press conference on Friday (Photo: Louis Toussaint)

Further to the communique it released on Thursday making known to its consumers why certain products were scarce or not constantly available on the market, the Seychelles Trading Company (STC) has further detailed its importation challenges while it strives to maintain availability and quality of products it brings in for local consumers.

In a meeting with the press on Friday, the deputy chief executive of the STC, David Jean-Baptiste, chief of procurement Dharam Sharma and deputy chief of procurement Françoise Robert gave consumers more details of the different increasing importation challenges the STC is facing.

Following challenges the STC is encountering to import and supply some perishables mainly potatoes and oranges, Mr Jean-Baptiste explained that the problem is a worldwide one as there is unavailability of reefer containers for the goods to be shipped on a timely basis to Seychelles as well as increasing prices of these goods.

Mr Jean-Baptiste went on to explain the challenges of seasonality of the goods, some importation restrictions from the source markets as well as the long travelling distance when they are sourced from Europe.

Asked why other importers in the country cannot cover the scarcity, Mr Jean- Baptiste noted that the STC alone imports around 80% of potatoes that the country consumes while other importers bring in the remaining 20% only which does not make a big difference.

“Understandably other importers are not interested in bringing in these products because profits to be made on them are very low,” Mr Jean-Baptiste remarked. In the case of the STC, he said the company can only make a small profit on potatoes only when they are imported from countries like Pakistan and India.

Furthermore it is a category 1 product and part of the 14 food items on which the STC has the mandate to maintain them at the same agreed subsidised prices all the time.

He pointed out that for 2021 alone the STC lost the sum of R102 million through the importation of the category 1 products and to ensure our population continues to receive these commodities at affordable prices.

But why does the STC not consider sourcing perishable goods from countries in the region like Mauritius and Kenya for instance?

Ms Robert explained that the STC has approached Mauritius when in difficulties but the latter has never been able to help us stating that it is also facing the same difficulties like we are.

“Authorities there preferred to provide us with their suppliers’ details so we could make our own importation arrangements if need be. With regard to Kenya, importing from there is as expensive as importing from Europe,” Ms Robert stated.

Meanwhile when it comes to consumer complaints that the quality of products like potatoes and apples are of poor and inferior quality, Ms Robert admits that the STC at times faces this problem and has to address these constraints.

“Yes we do get these complaints and these are related to long storage periods after seasons are over and we still receive them from the suppliers and also our buffer stock sometimes get affected. This is something that we cannot detect in advance but is only after consumers cut open the products that they are found to be rotten inside. With regard to apples, Ms Robert noted that storage conditions and change in temperature after retailers have bought their consignments also play a role and that unfortunately there is not much the STC can do in such situations.

Other than shortages of oranges and potatoes other products that were scarce for some time were carrots and apples which Ms Robert admitted the arrival of due containers of the products had been delayed and they’ve had to bring in small consignments by air as well.

Meanwhile to control the situation of scarcity, Ms Robert said the STC has brought in a small consignment of the products by air, but Mr Jean-Baptiste noted that the bulk, around four containers of potatoes, are expected in February even though it would not be sufficient.

He noted that to ensure availability of the product and that the STC does not run out of potatoes until March when the product is expected to be back in season from different source markets, it would try to exert some control on sales making it available more at the hypermarket where consumers could purchase at least two pre-packed kilos of the product each.

Mr Jean-Baptiste is calling on all consumers to look out for the STC RRP prices which is R11.90 for a kilo of potatoes and R18.75 for a kilo of oranges and not buy the products at exorbitant prices from other retailers.

Meanwhile the shortage of oranges has been rectified and the item is already back in stock.

The STC is also encouraging people buying its products in bulk to later sell at retail prices, to do their purchases at the STC wholesale outlet.

Going back to the issue of quality of the products STC sells, Mr Jean-Baptiste revealed that while prices of commodities have increased remarkably worldwide, the procurement team at the STC has for the past 10 years continued to negotiate with suppliers to get a good rates for the 14 category 1 products to reduce its losses when they are sold here. Unfortunately, the suppliers tend to compromise the quality of these products shipped here when this is the case.

“Of course when we realise there are issues with the quality of these products, we go back to them to claim that the quality has been compromised and this is a constant battle for us,” Mr Jean-Baptiste said, noting that this is a big challenge for the STC.

One typical example of products which is of poor quality is rice which he has revealed that at present the STC has brought a claim to the supplier as the quality is not of the standard and quality expected.

Mr Jean-Baptiste noted that the STC has had no choice but to bring the situation to the attention of the government highlighting that something must be done to address the situation and at present the STC is waiting for a feedback as to a decision with regard to the category 1 products.

He noted that the STC for its part is continuously exploring ways to try and mitigate the situation like for instance introducing premium quality products as parallel substitute products alongside the category 1 products.

Meanwhile Mr Jean-Baptiste is calling on consumers to trust the team at the STC which is trying its utmost to address the different challenges with regard to quality of products while at the same time ensure availability and reasonable prices.

Compiled by Marie-Anne Lepathy