Rice importers in trouble over loans

Several rice importers in Kumasi are in trouble, as they are being chased by their bankers over loan facilities they secured to support their businesses.

The rice importers are facing enormous challenges due to decision of the current Mahama administration to restrict the importation of rice to the Tema and Takoradi Harbours, as well as Kotoka International Airport.

The new directive took effect from November 1, 2013.

The government believes the new policy would help prevent smuggling of rice into the country and boost revenue generation.

Speaking to CITY & BUSINESS GUIDE, Yaw Korang, Organizer of the Ghana-Cote D’Ivoire Rice Importers and Sellers Association (GCIRISA), said over 500 members of the association had closed down their shops due to the unavailability of funds.

Mr. Korang said the government gave members a two-week ultimatum before implementing the ban, stressing “that at least they could have consulted us for our views before the ban.”

Mr. Korang said most of the members had secured loans from banks to improve their businesses, adding that “now we are not in the position to settle the loans.”

The bankers of GCIRISA members are aware of the depressed financial situation of the rice importers, he said.

Mr. Korang appealed passionately to government to withdraw the directive, noting that “this killer policy is biting us hard.”

He flatly debunked assertions that rice importers were evading taxes, stating that members of his association are patriots, who have over years paid taxes on their imported goods.

Mr. Korang observed that the new policy would increase the price of rice for the ordinary Ghanaian on the market, stressing that it would increase pressure at the afore-mentioned ports.

He said several people would be rendered jobless due to the enforcement of the ban, saying “we did not vote for President Mahama for him to collapse out businesses.”

Mr. Korang warned that they might demonstrate against the government if it fails to stop the implementation of the ban.