The Bahrain cabinet has announced a bold move to stockpile food and stem skyrocketing prices. A national importing company will be established to secure sufficient stocks of basic food products.

Deputy Premier Shaikh Mohammed bin Mubarak Al Khalifa chaired the weekly session which revealed that the new firm will also be in charge of building long-term strategic food reserves and ensuring its longevity.

Bahrain Holding Company - Mumtalakat - has already been tasked to co-ordinate the project with the private sector.

The state-owned BHC has also been instructed to boost the government stake in Trafco food company's capital base.

The Cabinet ordered a string of other technical and procedural measures aimed at ensuring the unhindered flow of merchandise in local markets.

Fees levied on merchandise handling and other operations will also be reconsidered as part of the move.

A seaport specialised in importing and storing large stocks of construction material will be set up, and the Cabinet gave instructions for the infrastructure project to be completed quickly to ease pressure on prices.

A company aimed at ensuring necessary construction materials for government-funded projects will also be set up.-TradeArabia News Service