Illicit Rice and Sugar Trade Pushing Legitimate Businesses to the Brink – FABAG Warns

By Praisebell Rosemond Larbi

The Food and Beverages Association of Ghana (FABAG) has issued a stark warning over the escalating smuggling of rice and sugar into the country, cautioning that the illicit trade is crippling legitimate businesses and depriving the state of critical revenue.

In a strongly worded letter to the Ghana Revenue Authority (GRA), the association said smuggling activities have now dominated the rice and sugar market, undermining fair competition and threatening the survival of compliant importers and distributors.

FABAG revealed that smugglers are exploiting unapproved routes at major entry points, particularly Aflao on the eastern border with Togo and Elubo on the western frontier with Côte d’Ivoire, to push massive quantities of untaxed rice and sugar into the Ghanaian market.

“For years, FABAG and other business groups have sounded the alarm, providing evidence, issuing warnings, and calling for decisive action. Regrettably, the response has been hampered by bureaucratic delays and excuses. As a result, smuggling has reached unprecedented levels, inflicting severe losses on honest Ghanaian enterprises,” the letter stated.

According to the association, legitimate businesses that adhere to tax regulations, pay duties, and provide employment are being squeezed out by illegal traders who take advantage of the wide duty differentials between Ghana and neighbouring countries. This gap, FABAG said, has created irresistible incentives for evasion and undercutting of genuine importers.

FABAG outlined several urgent interventions to curb the growing menace. These include the formation of a nationwide anti-smuggling task force led by GRA Customs, the overhaul of border management systems with digital surveillance tools, public disclosure of enforcement outcomes, and enhanced coordination between the Ministry of Trade, National Security, and border patrol units to dismantle smuggling networks.

The association further recommended a comprehensive review of import taxes to reduce the distortions that fuel cross-border evasion and help level the playing field for compliant traders.

“Smuggling constitutes economic sabotage. Ghana cannot continue to lose revenue and jobs because of negligence in enforcing trade laws. The government’s silence and inaction are tantamount to complicity. The time to act is now,” the association warned.

FABAG cautioned that if decisive action is not taken, the formal food import market, along with the country’s growing local rice industry, could face collapse, resulting in substantial revenue losses and setbacks to agricultural development.

Rev. John Awuni, Chairman of FABAG, reaffirmed the association’s commitment to working with government and stakeholders to promote a transparent, accountable, and competitive trade regime that safeguards consumer safety and strengthens national revenue.