FABAG attributes 'reduction' of rice imports to smuggling

Accra, Sept. 12, GNA - Mr John Awuni, a member of Food and Beverages Association of Ghana (FABAG) has attributed the reduction of rice importation to increased smuggling of the commodity into the country.

He also blamed the smuggling situation on the numerous taxes and hurdles at the entry-points of the country which he said had encouraged most people to smuggle the product from neighbouring Ivory Coast, Benin and Burkina Faso where taxes were more relaxed. Mr Awuni, who was addressing a press conference on the wanton smuggling of the commodity into the country at the weekend, suggested to the government to consider reducing fees and levies at the ports to discourage smuggling.

He mentioned the need for extensive engagement with relevant stakeholders in fiscal policy issues, consumer sensitization and improvement in storage and warehousing as some of the recommendations that could make the rice industry in the country vibrant. Mr Awuni said the smuggling was not only inimical to rice business in the country, but also served as a 'burst pipe' in terms of revenue to government as most of the smugglers benefited tremendously to the detriment of government.

"I am surprised that government is not considering our claim as an urgent issue to tackle, but rather chooses to ignore it," he said in an answer to a question from the GNA about the impact of smuggling on the country's economy.

The FABAG Official said the initiatives to encourage the consumption of locally produced rice would be a fluke if adequate measures were not taken to protect the local rice, which according to him, could not compete favourably with smuggled perfumed rice. He called on government to act swiftly to save the industry from collapse by strengthening security at the Elubo, Debiso, Nkrankwanta, Sunyani, Berekum, Dadieso and Enchi borders where most of the commodity was smuggled through.

Mr Awuni said the current state was also a deterrent to investment in food and beverages in the country and called for sustained collaboration between the association and government to eliminate all factors that militate against smooth trade in the country. He called for closer collaboration between government and the private sector to achieve accelerated development that could in the end enhance the achievement of President Mills' 'Better Ghana Agenda' in the coming years.