Halt smuggling of cheap wheat flour from Cote d’Ivoire – Flour Milling Companies tell Gov’t
Flour Milling Companies (FMCs) operating in the country, have petitioned the government to take urgent steps to stop the growing phenomenon of smuggling of cheap wheat flour from Ivory Coast into Ghana by traders.
According to the Flour Milling Companies, the smuggling of cheap wheat flour into the country is affecting their business and distorting the flour market in Ghana.
The Flour Milling Companies argue in their petition that, “since June this year, there has been an influx of cheap wheat flour from Ivory Coast into Ghana. These wheat flour are subsidised by the Ivorian Government as measures to cushion their milling companies in light of the current global economic situation”.
“In Ivory Coast, Government has reduced the VAT rate from 18% to 9% and Senegal from 18% to 2%. Due to the high cost of flour in Ghana, some traders have taken advantage to transport cheap wheat flour into Ghana from Ivory Coast”.
“However, the export of wheat flour from Ivory Coast has been banned hence the flour are smuggled into Ghana. The volumes of the smuggled flour into Ghana is increasing by the day and this is affecting the sales of Ghanaian flour milling companies,” the Flour Milling Companies observed in their petition.
“As at today 18th August, 2022 the volume of sales of the major local flour milling companies has dropped to almost 50% and consequently resulted in a reduction of production volumes to about 30% production capacity”.
“The smuggled flour has been sighted in many markets and at major bakery shops in Ashanti, Western, Central, Brong Ahafo and Greater Accra Regions”.
“These smuggled flour is sold between GH₵360.00 and GH₵390.00, a bag as compared to GH₵460.00 per bag for flour produced in Ghana”.
“If the situation is not addressed immediately, many flour milling companies in Ghana would have to shut down production,” the petition further read.
To end the smuggling, the flour milling companies in Ghana are proposing that as a matter of urgency, government through the Ministry of Food and Agriculture, implement measures such as issuing a strong warning “to perpetrators against the smuggling and sale of the smuggled flour in Ghana”.
Secondly, collaborate with FDA and the security agencies to confiscate all smuggled flour in the country and tighten security at the countries boarders particularly, along the Ghana-Ivory Coast boarder, to arrest culprits and prosecute them forthwith.
Thirdly, the flour milling companies are requesting of government to consider waiving taxes on wheat imports so as to make Ghana’s wheat flour competitive with imported flour from neighbouring countries and lastly, “sensitize the public to patronize Ghanaian products and to protect local industry”
Read details of the press statement by the Flour Milling Companies:
