Gov’t policy crucial to addressing high rice importation challenge – Avnash Chairman
For Ghana to cut, significantly, its importation of rice, there must be a deliberate government policy to boost the production and consumption of locally grown rice. That’s according to the chairman of local food processor, Avnash Industries Ghana Limited – A.K. Mirchandani.
A.K. Mirchandani believes that the government must show more commitment towards local farmers to help address the rice importations situation.
“I think change depends on the policy and the government and the key is the government. Government must support local industry and by that way, all the farmers will get rich and will be able to invest more in mechanization and automation.”
“When the cedi is depreciating, its only local content that will help Ghana stand on its feet” he added.
Stakeholders in the rice value chain find it worrying that Ghana was estimated to have spent almost ₵7 billion on the importation of rice from 2017 to 2020 especially as conversations on the depreciation of the cedi has become rife.
Local rice producers have been in the news some months ago over the government’s decision to not completely scrap the discount on benchmark values on imported rice which they lamented was making them uncompetitive.
The Association of Ghana Industries (AGI), for instance, stated that it was not satisfied with the government’s decision not to review the benchmark discount value.
After months of agitation and weeks of consultations with stakeholders in the trading community on the benchmark values reduction policy, the government concluded on a 30 per cent discount for all goods and 10 per cent for vehicles.
This took effect from March 1, 2022, and according to the government, it allows for a win-win situation for all parties involved.
Initially, a discount of 50% was applied on the benchmark values of selected goods, while a 30 per cent discount was applied on vehicles.
Source: Ghana Business
