Rice Millers Association calls for reversal of benchmark reduction policy

The rice farmers’ association wants politics to be reserved

The Ghana Rice Millers Association (RMAG) is calling for a reversal of the benchmark reduction policy, which allows customs to determine import values ​​for duties at the country’s ports.

A statement copied to the Ghanaian news agency and signed by its official, Mr. Yaw Adu-Poku, said the Ghana Traders Union (GUTA) has in recent weeks called for the referral policy to be maintained. by the government, citing the possible increase in the prices of imported goods as their reason.

Despite GUTA’s arguments, RMAG maintained that the policy over the two years had a negative impact on Ghana’s rice industry, as most of the rice mills were currently closed and workers made redundant.

This is due to the high cost of local production as imported substitutes have benefited from a 50 percent reduction in customs reference values, lowering the prices of imported rice and rendering local alternatives uncompetitive in the market.

The statement lamented that farmers in the countries of origin of imported rice received support and subsidies in their production while Ghanaian farmers had little or no subsidies for rice production.

“We believe this policy benefits only a few select traders, especially large importers of rice and other commodities, while the entire rice value chain in Ghana suffers. The consuming public has not benefited from this reduction in benchmarks as product prices have not fallen as expected in the past two years since the start of the policy.

The rice value chain in Ghana provided income to around 500,000 people in households engaged in various activities of the value chain, according to the statement, and many people were going through difficult times due to the adverse market conditions caused. by politics.

“While the government has set itself the goal of making Ghana self-sufficient in rice production by 2022, the main rice mills are closed. RMAG, as a key player in helping the government achieve this goal, remains skeptical about Ghana’s prospects of achieving self-sufficiency in rice production. To date, 90 percent of brands of rice are imported.

“It is unfortunate that GUTA appears to be threatening the government with not reviewing the policy after two years of its implementation. The government learned practically (after two years) that traffic to our ports did not increase as expected and the prospects for increased revenues that were to result from the policy remained elusive; this policy enriches only a few importers and not the general population of traders in Ghana as GUTA seeks to portray.

The Association therefore called on the government to review the policy in light of the lessons learned over time to save the local rice industry.

He said RMAG and many Ghanaian workers who have lost their jobs and livelihoods due to the policy are with the government should be bold with its intentions to review the policy to support key targeted sectors to create jobs. to carry out its industrialization program.