The Food and Beverages Association of Ghana (FABAG) has issued a stern warning about the rampant smuggling taking over the country’s rice and sugar markets. In a letter to the Ghana Revenue Authority (GRA), FABAG highlighted how illegal imports are pushing legitimate importers and distributors to the brink of collapse
FABAG revealed that smuggling rings exploit unapproved routes at key entry points such as Aflao from Togo and Elubo from the Ivory Coast, flooding the market with massive quantities of rice and sugar. This illicit trade has undermined fair competition and costs the state millions in lost tax revenue.
“For years, FABAG and other business groups have raised alarms, presenting evidence and calling for decisive action,” the letter said. “Unfortunately, bureaucratic delays have allowed smuggling to skyrocket, causing severe damage to honest Ghanaian businesses.”
The association emphasized that while legitimate businesses comply with tax rules and contribute to employment, illegal operators gain unfair advantages because of the significant duty gaps between Ghana and its neighbours. These discrepancies fuel evasion and exploitation of lower tariffs abroad.
To combat the problem, FABAG called for urgent measures including a nationwide task force led by GRA Customs, revamped border management with digital monitoring, public transparency about enforcement, and stronger cooperation between the Ministry of Trade, National Security, and border patrols to dismantle smuggling networks. It also urged a fair review of import taxes to create a level playing field.
“Smuggling is economic sabotage,” the letter warned. “Ghana cannot afford to lose revenue and jobs due to lax enforcement. Government inaction amounts to complicity. Immediate action is essential.”
FABAG stressed that if unchecked, the surge in illicit imports could devastate the formal food import sector and local rice production, resulting in massive revenue losses and a weakened agricultural industry.
Rev. John Awuni, FABAG Chairman, pledged ongoing collaboration with stakeholders to foster a fair and transparent trade environment that protects national revenue and consumer safety.
Story by: Mercy Addai Turkson #ahotoronline.com