Food Sector Crisis! Smuggling at Aflao & Elubo Hits Unprecedented Levels — FABAG Sounds Alarm
The Food and Beverages Association of Ghana (FABAG) has expressed new worries about an alarming increase in the amount of sugar and rice that are being smuggled into the nation. According to FABAG, this scenario is harming legal companies and costing the state millions of dollars in lost income. FABAG claims that in recent months, the illicit trade has “virtually taken over” Ghana’s rice and sugar market, driven by smuggling via unauthorized routes, especially Aflao on the Togo border and Elubo on the Ivory Coast corridor. The group fears that legitimate importers and distributors of locally produced rice are being driven to the edge as cheaper, untaxed items flood the market. “The main driver of smuggling is the significant duty differential between Ghana and neighboring countries, which incentivizes traders to bypass official channels,” the association said in a statement. FABAG claims that despite repeated alerts over the years, government response has been slow and ineffective, allowing smuggling activities to reach “unprecedented levels.” A comprehensive overhaul of border management with improved digital monitoring systems, immediate nationwide enforcement operations under the direction of the GRA Customs Division, public disclosure of enforcement outcomes to ensure accountability, and increased cooperation between the Ministry of Trade, National Security, and border patrol agencies are just a few of the critical steps that FABAG has outlined as necessary to restore order to the market. The group warns that if the trend continues unchecked, both Ghana’s expanding local rice industry and the legal food import sector run the danger of collapsing. It calls for a fair assessment of taxes and tariffs to eliminate the incentives for smuggling. FABAG warns that further inactivity might seriously harm the agriculture industry and jeopardize national food security in addition to lost income.
