The decision by the Government of Ghana to ban the importation of rice products by land, effective November this year, has angered some dealers and importers of the product in the country.
The Ghana-Ivory Coast Rice Importers and Sellers Association (GIISA) has described the policy as dangerous and unacceptable and has called on the Ministry of Trade and Industry to revise its decision.
The Ministry of Trade and Industry has reportedly announced a ban on the importation of rice into Ghana by land, beginning Friday, November 1.
It has, therefore, announced that any individual or group that imports rice into the country could only do so through the Kotoka International Airport or pass through the nation’s ports at Tema and Takoradi, as it is no longer lawful to import the product by land. The policy, according to the Ministry, is to check alleged constant evasion of taxes by importers, smuggling, under-invoicing and trade mark infringement.
But members of the Ghana-Ivory Coast Rice Importers and Sellers Association say the policy will not only push them out of business but also has the tendency to affect consumers of rice in the country.
According to them, once the policy comes into effect, it will breed monopoly and create opportunity for few importers to bring the product into the country which will in turn affect demand and supply, and eventually push prices beyond the affordability of average consumers.
At a press conference in Kumasi to register their displeasure against the decision, members of the association lamented that the government is creating an undue opportunity for foreign nationals and businesses to flourish at the expense of indigenes.
They bewailed that local small scale businessmen who cannot afford shiploads and rely on in importation through the country’s corridors will be pushed completely out of the market, leaving the business solely for foreign nationals.
“As we are all aware that in Ghana, the rice business is controlled by foreigners; all the big importers who can afford to import shiploads of rice are foreigners and it is them who stand to gain and make profit from this policy,” they argued.
Apart from this, the association further noted that prices of rice will significantly shoot up if the policy is implemented, estimating that a 25kg of rice for instance, which is less than GH100 cedis will be sold for GH¢150. They also cautioned that lots of Ghanaians will lose their jobs and become unemployed once the policy comes into force.
According to them, it is not entirely true that those who import rice by land evade taxes and engage in smuggling, stressing that the kind of corruption and malfeasances that go on at the ports and harbours cannot be compared to that which goes on at the borders.
They argued further that it will not be fair on the part of government to impose the ban, simply because some of their few colleagues are evading taxes or engage in under-invoicing, contending that the best solution is not to ban the importation by land but rather tighten security at the nation’s borders and increase supervision of tax collection.
