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 directed 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 10:00:31 +0000
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