EXECUTIVES OF the Food and Beverage Association of Ghana (FABAG) have expressed worry over the $40 million, which goes down the drain as a result of "massive rice smuggling in the country."

The group, which comprises of both local and foreign general merchants, however, stood firm by media publications that so much money was being lost in that direction, and so the government should endeavour to reduce tariffs on rice importations.

At a media briefing in Accra yesterday, John Awuni, a member of the association, said smuggling, over the years, had undermined the development of the local industry, food security and the economy at large, emphasising, "We are here to confirm that the story is largely true, which we believe, would be of great concern to the government and the various state agencies."

The association lauded the government's decision to restore import duties on rice, cooking oil and maize, as indicated in the 2010 budget, which said, "The global conditions that necessitated the removal of those duties have abated, and the government finds it pertinent to restore the duties, in order to encourage local production, create jobs, and conserve foreign exchange."

The development, according to the FABAG, was good news, as it served as an incentive to the local farmers, while fitting into the social democratic values of the government.

"The Minister, arguably, gave reasons for the restoration of the taxes, but we want to state that what has happened in recent times, almost defeats the statement above," he said.

He noted that the influx of smuggled items onto the Ghanaian market had affected them, as legitimate importers of rice and cooking oil. The group said its general sales have dropped by 25 per cent since the beginning of the year.

Furthermore, Mr. Awuni said that out of 100,000 metric tonnes of rice smuggled, 75, 000 metric tonnes were perfumed rice, adding, "The commonest brand smuggled into the country is Uncle Sam rice, because the inscription on it is in the French language."

He mentioned neighbouring Cote d'Ivoire as one of the countries where most of the rice was smuggled into Ghana from, using illegal routes such as Elubo, Debiso, Nkrankwanta, Sunyani, Berekum, Dadieso and Enchi.

He said due to the high rate of the tariffs on imported rice, it had made it expensive, when compared to those smuggled from Cote d'Ivoire.

Also, the Chairman of the FAGAB, Nabil Mogazil, said they were working round the clock to ensure that Ghana has enough food, and the perception that importers were killing the local business, must be cleared. He explained that the association had over the years been assisting the local rice farmers, through funding, equipment, and paying also for their produce.

Mr. Mogazil lamented that rice production in the country could not meet the demand of the populace, stressing that 80 per cent of the farmers depend on rain water to irrigate their farms for production.

He cautioned that if the government did not do anything about the importation tariffs and rice smuggling, then members of the association would have no other option than to lay-off some of their workers, which, according to him, would further aggravate the unemployment situation in the country.