Smugglers Take Over Ghana’s Rice and Sugar Market –FABAG Sounds Alarm

As Ghanaian farmers watch their rice produce go to waste amid a surge of smuggled foreign rice, the Food and Beverages Association of Ghana (FABAG) has sounded the alarm over escalating smuggling activities that are taking over the country’s rice and sugar market.

Legitimate importers and distributors of locally produced rice are said to be struggling as massive volumes of smuggled rice and sugar flood the Ghanaian market through unapproved routes, particularly at border points such as Aflao (Togo) and Elubo (Ivory Coast).

FABAG warned that these illicit activities not only undermine fair competition, but also deprive the government of millions of cedis in import duties and taxes, putting honest businesses at a disadvantage.

The association urged the government to take urgent and concrete action to address the crisis. Among the measures recommended was a nationwide clampdown on smuggling led by the GRA Customs Division, an overhaul of border management systems including digital monitoring of rice and sugar consignments, and public disclosure of enforcement results to demonstrate accountability.

FABAG also called for stronger collaboration between the Ministry of Trade, National Security, and border patrol units to dismantle smuggling cartels, as well as a review and adjustment of import taxes and tariffs to promote compliance and ensure a level playing field for all traders.

These concerns were outlined in a letter from FABAG to the Ghana Revenue Authority (GRA), which was also copied to the Finance Minister, the Minister of Trade and Industry and the National Security Coordinator.

In the letter, the association described smuggling as “economic sabotage,” warning that the continued influx of illicit rice and sugar could collapse the formal food import sector, harm local rice production, and erode vital government revenue.

FABAG noted that the significant duty differential between Ghana and neighboring countries remains a major incentive for traders to bypass official channels.

While legitimate businesses comply with tax regulations and provide employment, illicit traders continue to exploit cheaper duties abroad, intensifying unfair competition.

The association urged the government to act decisively to protect Ghana’s economy, safeguard public health, and secure the nation’s future.

FABAG reaffirmed its commitment to working with stakeholders to ensure a fair, transparent, and accountable trade environment that benefits both national revenue and consumer safety.

 

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