Food security is not just a problem of production but also of purchasing power, access and distribution.
Food
security has been defined as spelled out in a policy brief of the FAO
(Food and Agricultural Organization) dated June 2006 as existing "when
all people, at all times, have physical and economic access to
sufficient, safe and nutritious food that meets their dietary needs and
food preferences for an active and healthy life."
Food security issues are complex and its solutions differ in application to all countries.
In
Ghana, the issue of self-sufficiency to create "food security" has been
at the center of heated arguments with particular reference to one of
the basic foodstuffs; rice.
The situation in Ghana is its reliance on imports which comprise about 70% of its rice demand.
However,
according to the Ministry of Food and Agriculture, the country has made
great strides since the past four years in promoting locally produced
rice.
The fact still remains that Ghana's demand and supply gap in rice production is primarily sourced through imports.
According
to Food security - Ghana, "globally, there is consensus that if a
country has the ability to become self-sufficient in most of its food
requirements it should pursue that objective. In the case of Ghana it
definitely has the ability to become self-sufficient in the supply of
both rice..."
The question, however, is how can this be achieved?
The
issue with rice production is that of whether the rice is of high
quality and how well Government of Ghana can boost local rice imports.
Another issue is how to enhance productivity of the rice produced or the rice imported.
Producing more without taking the Ghanaian consumers into consideration is surely a wrong signal.
Ghanaian
rice hardly sells since the quality of the imported rice is deemed much
better than the locally produced ones though it costs more.
With
so much prominence given to rice imports into the country, small-scale
importers are reported to indulge in smuggling activities with "official
connivance", allowing them to sell at lower prices and invariably
depriving the nation of its deserving tax revenue.
Rice smuggling
has long been a regular and lucrative venture along Ghana's entire
western frontier of which Elubo, Debiso, Dadieso, Enchi among other
areas are reported to be key trade routes.
In May last year,
Ghanaians were taken aback when ace investigative reporter, Anas
Aremeyaw Anas, posing as a rice dealer, revealed the existence of
powerful rice smuggling cartels, operating along Ghana's porous border
with La Cote d"Ivoire.
Anas Aremeyaw Anas released an
audio-visual footage of live smuggling operations at various areas of
the western border which confirmed "the voluntary connivance of
uniformed public officials, engaged in smuggling transactions involving
several convoys of truck-loads of rice, ready to be hauled into Ghana –
free of tax, free of quality control checks and free of VAT ....while
fat, illicit payments are made to individuals and into private pockets.
The state is said to lose a whooping GHc 69 million every year, to this
seemingly harmless activity along our land borders with la Cote
d’Ivoire." as published by myjoyonline on October 6,2013.
It reported that over 100,000 metric tonnes (about 4 million bags) of rice is smuggled into Ghana from Cote d'Ivoire annually.
Through these depots and routes, several truckloads of rice evade import duties and Valued Added Tax (VAT).
Perhaps
the main incentive to these rice smugglers is the high duty
differential in the importation of rice and its related dealings.
Obviously, such activities have severe repercussions on legitimate rice importers in Ghana.
The
State runs into huge losses in the generation of tax revenue and
legitimate rice importers also risk losing their businesses.
A
report released by Ministry of Information early this year disclosed
that "due to the difference in the duty scheme, the price of perfumed
rice in Ghana has increased by 34.5 percent.
The report further
stated that "the significant price difference naturally drives the
consumer to purchase a bag of ‘Uncle Sam’ smuggled in from Cote d’Ivoire
rather than a bag of local or locally-imported rice. ‘Uncle Sam’ is
therefore currently sold on all Ghanaian markets and retail outlets."
(myjoyonline report, October 2013).
BRIDGING THE GAP
Rice
smuggling can be reduced to the minimal point when government directs
its focus to shutting down the destination venues used by the smugglers.
The
National Security apparatus, in the Tuesday edition of the Enquirer,
was reported to have begun investigations into the activities of customs
officers at Elubo in the Western Region for allowing an alleged rice
smuggler to bring into Ghana, twelve articulated trucks and two cargo
trucks of "Uncle Sam" rice.
It is believed that the smuggler,
Hayssam Haroun of Kaprace Limited, colluded with the Elubo Custom
officers to "backdate the period the rice was imported from the Ivory
Coast."
Four of the 12 trucks were reportedly released by Customs
at Elubo and were on their way to Kumasi in the Ashanti Region, the
Enquirer stated.
As a way to curb the situation, government has
placed a fiat (an order by court) on the importation of rice through the
country's borders to maximize revenue.
The fiat ensures that
rice imports are patched through the Tema port, Takoradi Harbour and the
Kotoka International Airport (KIA).
These are the only authorized routes.
Moreover, dealing with the situation also demands the need to cut down high taxes imposed on the importation of rice.
Contrary
to several countries which have cut down taxes on basic foodstuff
imports as means of supporting consumers, the Government of Ghana has
opted to impose punitive duties and taxes that have resulted in
worsening the plight of consumers and also led to the establishment of a
thriving smuggling industry in Ghana.
High duties and levies on
rice imports may serve as a major disappointment to rice importers in
the country, hence forcing those who cannot cope with the situation to
devise new ways of promoting their business.
Therefore, a
moderate tax imposition will surely discourage rice importers from
bootlegging rice and in the long run, boost the nation's revenue and
economic status.
Considering the effect of rice smuggling on the
food security, it is of no doubt that government's intervention and
lower taxes which may serve as incentive to rice importers would help
combat any illicit trade. |
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