THIS IS NOT the best of times for Liberian families, who have had to adopt bizarre cost-cutting measures to cope with the recent hardship occasioned by the hike in the price of rice, the country's staple food.
SEVERAL OF THEM continue to lament that their income could no longer take care of their daily needs, adding that the price of rice has almost doubled in the market.
IN RECENT MONTHS, food prices have been on the rise across Liberia. The situation has deteriorated due to the free fall of the Liberian dollars to the United States dollars.
FRONTPAGEAFRICA HAS gathered that the rice importers had written to the Ministry of Commerce and Industry, proposing a minimum price of US$20 per 25kg bag of parboiled rice. They argue this increment is necessary to offset the rising cost of importing rice to Liberia.
FRONTPAGEAFRICA HAS seen a communication from K & K Trading Corp. to the Minister of Commerce, outlining the challenges they are facing and the losses they continue to incur while the Liberian government delays the price increment on the local market.
IN FEBRUARY, INDIA extended a 20% export tax on parboiled rice indefinitely. Initially imposed in August last year and intended to last until March 31, 2024, the measure by the Indian government was intended to ensure sufficient local stock and stabilize domestic prices in India. This tax increase on rice exported from India is now dealing a significant blow to Liberian importers.
IN OCTOBER 2023, Liberian rice importers requested an increase in the rice price from US$17.50 to $20, citing rising costs. However, this request was not fulfilled due to political considerations during the election period.
AGAIN, IN FEBRUARY, the importers outlined reasons for their price increase request, including the additional 20% charge from the Indian export tax and increased transportation costs due to longer shipping routes caused by the war in the Middle East.
DESPITE THE FINANCIAL pressures, the Liberian government and importers initially agreed to reduce the price to US$16.50 and focus on local rice production investments. This agreement was contingent on observing if the Indian government would reduce tariffs, which did not happen.
FOODSTUFFS SELLERS in almost all of the 15 counties have lamented that the cost of a bag of rice had risen almost 10 per cent.
FRONTPAGEAFRICA GATHERED that long grain rice, which used to sell for between LD$ $3500, now costs over LD$ 4,000 depending on the location, putting a huge pressure on the consumers.
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THE DESPAIR HAS spilled into social media as angry citizens express their frustration with the daily hikes of staple foods, transportation costs, school fees, house rent and other inescapable expenses that are becoming impossible to finance due to paucity of resources and escalating inflation.
THE EXECUTIVE MANSION released a statement Tuesday, saying that President Boakai had met with importers on Tuesday, disapproving any increment in the price of rice and that prices remain unchanged pending further and thorough review.
"THE GOVERNMENT OF Liberia has advised strongly that there be no hoarding of this essential commodity and no cross-border transfer or transshipment from Liberia. The Ministries of Justice, Commerce and Industry and the Joint Security have been instructed to ensure that this directive is fully adhered to. All parties are encouraged to play their part at this critical juncture as the government strives to move ahead full-scale with the implementation of the ARREST Agenda for prosperity and national peace," the Executive Mansion said in a release.
WHILE IT IS TRUE as various representatives of the Joseph Boakai-led administration have asserted, that the government inherited a battered and serially mismanaged economy, there is no doubt that the situation is getting worse.
THERE MUST BE immediate, medium-and long-term solutions. The administration should avoid the temptation to take refuge in convenient platitudes or the blame-game strategy of its predecessor which did not serve the nation well. It is time to listen and act with compassion and a sense of urgency.
