Demand for Local rice soars as govt bans supply of imported rice into the country • Governments crack down on the importation of rice has contributed in surging demand for local rice as it outstrips supply. • Mr John Awuni, Corporate Affairs Director of Finatrade, distributors of a brand of locally produced rice ‘Pride Rice,’ said even though supply levels have not been re¬duced, demand seems to outstrip supply. • He wants the Ministry of Trade to sustain the crack down on the numerous unfair trade practices, including evasion of import duties and other taxes, under¬-invoicing, infringement of trademarks, and smuggling. • Owing to the depreciation of the cedi, coupled with a ban on inland importa¬tion of rice, traders are said to be reporting a boost in the pa¬tronage of locally produced rice. • For example, 50kg foreign rice costs GH¢ 250 compared to GH¢170 for the same quantity of local rice with compa¬rable quality. • The price of 25kg of locally pro¬duced rice is GH¢70 as against GH¢85 for the same quantity and quality of im¬ported rice. • Market watchers say the absence of cheap smuggled rice, which is sold below market rates of both locally pro¬duced rice and legally imported rice, is contributing significantly to the demand for local rice. • The Trade Ministry on October 14, 2013 di¬rected that all importation of rice into the country must be done through the airport or by sea. • The policy, according to the Trade Ministry, was “intended to provide a framework of administrative procedures through which the numerous unfair trade practices, including evasion of im¬port duties and other taxes, under-in¬voicing, infringement of trademarks and smuggling, shall be controlled.
Posted on: Mon, 18 Aug 2014 09:34:27 +0000
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