Yaw Adu-Poku
The Rice Millers Association of Ghana (RMAG) has called for the repeal of the benchmark value reduction policy used by officials of the Customs Division of the Ghana Revenue Authority (GRA) in determining values of imports for duty payment.
According to the association, the policy, over the last two years, has impacted negatively on the rice industry in Ghana, and said that most rice mills are currently shutting down and laying off workers.
A statement, signed by Convener Yaw Adu-Poku, said RMAG disagreed with Ghana Union Traders Association (GUTA) and maintained that the policy had resulted in high production cost for its members, “while the imported substitutes enjoy a 50% reduction in customs benchmark values.”
“The Rice Millers Association of Ghana has noted that the Ghana Union of Traders Association (GUTA), in recent weeks, has been calling for the benchmark discount policy to be maintained by the government, citing the possible increase in the prices of imported goods in the country as their reason,” RMAG said in a statement.
According to RMAG, the benchmark values has made imported rice prices very low, thereby rendering local produce “very noncompetitive” on the market.
“It is important to also note that farmers in the countries of origin of imported rice enjoy massive support and huge subsidies in their production whereas farmers in Ghana have little or no subsidies for rice production.
“We believe that this policy is only beneficial to a select few traders, particularly big importers of rice and other commodities, while the entire rice value chain in Ghana suffers,” the statement indicated.
For RMAG, the consuming public has not actually benefited from this reduction in benchmark values because prices of products have not gone down as expected after the introduction of the policy.
“The rice value chain in Ghana provides income to an estimated 500,000 persons in household engaged in various activities in the value chain. Many of these people are currently going through very tough times because of unfavourable market condition that have been occasioned by the policy,” the association noted.
The statement said whereas government has set a target of making Ghana self-sufficient in rice production by 2022, major rice mills are shut down, pointing out that “the RMAG as a key player in helping the government achieve this target remains very skeptical about Ghana’s prospects of achieving self-sufficiency in rice production by 2022. Till this day, 90% of rice brands seen on shelves in or markets are all imported.
“It is very unfortunate that GUTA appears to be threatening government not to review the policy after two years of its implementation.”
By Ernest Kofi Adu