RICE IMPORTERS MAY HAVE TO BUY 50% OF THEIR SUPPLY LOCALLY BEFORE GETTING IMPORT PERMITS – ATO FORSON
Rice importers in Ghana may soon be required to purchase locally produced rice equivalent to 50 per cent of their intended import volumes before being granted permits to import the commodity, under a proposed government policy.
Finance Minister Dr Cassiel Ato Forson announced the proposal as part of measures to reduce the country’s dependence on imported rice, create reliable markets for local farmers and boost domestic production.
Speaking during an interactive engagement with students and members of the Kwame Nkrumah University of Science and Technology (KNUST) community on the New Economy Programme, he explained that an importer seeking permission to bring in 100,000 metric tonnes of rice could be required to provide evidence of purchasing 50,000 metric tonnes from local farmers.
According to the Minister, deliberate measures are needed to protect domestic agricultural production and ensure that rice imports do not undermine the livelihoods of Ghanaian farmers.
Dr Ato Forson also announced plans to introduce stricter public procurement regulations requiring government-funded institutions to prioritise locally produced rice, particularly for feeding students under the Free Senior High School (Free SHS) programme.
He questioned why local rice farmers continued to struggle to secure markets despite the government spending approximately GH¢4.5 billion to GH¢5 billion annually on the Free SHS programme, with about GH¢3.5 billion allocated to feeding students.
He argued that public expenditure should help create markets for local producers and ensure that taxpayers’ money supports domestic businesses.
The Finance Minister identified the textile industry as another sector that could benefit from stricter local procurement policies.
He questioned why government continued to source uniforms for security agencies from foreign suppliers while local manufacturers, including Juapong Textiles and Akosombo Textiles, faced operational challenges.
He maintained that prioritising locally manufactured uniforms for the military and police would create jobs and support efforts to revive Ghana’s textile industry.
Dr Ato Forson said the government intended to translate some of the proposed measures into legislation, with sanctions for individuals and institutions that fail to comply with the new procurement requirements.
He said the broader objective was to use government spending and trade policies to strengthen local industries, expand employment opportunities and accelerate economic transformation.
