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NSPA records its highest food-assistance spending in June as commodity prices surge

A vegetable vendor at the local market in Male' City. (Sun Photo/Mohamed Maavee)

NSPA spent the most on food assistance in June this year.

The highest expenditure to-date under the Food Assistance Program for low-income households was recorded in June, according to the National Social Protection Agency (NSPA).

Statistics published by NSPA show that 659 people received financial assistance to buy food in June, including eight new registrations that month. A total of MVR 26,360 was disbursed as food aid.

Compared to other months this year, NSPA distributed MVR 25,840 in January and MVR 26,040 per month over the following four months. In January, 700 people received assistance, while 706 people were assisted in each of the next four months.

This means June saw the highest expenditure, even though the number of beneficiaries decreased.

Food assistance is provided under the Social Security Act to people living in poverty. The aid covers basic food items such as flour, rice and sugar. The program provides MVR 40 per person per month, up to a maximum of MVR 240 per household.

To qualify, applicants must earn less than the income threshold specified in NSPA’s poverty-assessment guidelines.

Notably, prices of essential commodities, including food items, have risen sharply this year. The Bureau of Statistics’ Essential Commodity Price Index (ECPI) shows June recorded one of the steepest increases. Inflation rose 8.04 percent in June compared to the same month last year, after rising 2.17 percent in May.

Among ECPI categories, food prices increased 8.60 percent year-on-year in June, while beverage prices rose 5.49 percent. Vegetables saw the biggest jump, with prices rising 20.86 percent month-on-month and 22.44 percent compared to June last year.

Maldives relies heavily on food imports and is highly vulnerable to global market fluctuations. The supply chain disruption caused by the Middle East conflict on February 28 led to sharp price increases in the country.

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