Senyo Hosi proposes creation of ‘Rice Development Levy’ to boost local rice production
Former CEO of the Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi, has proposed to government the creation of the ‘Rice Development Levy’ to boost production of local rice in the country.
The creation of the levy Mr Hosi avers, will help curtail the impending shortage of rice in the country resulting from the policy directive of the Central Bank to withdraw forex support to importers of rice, chicken, vegetable oil and others.
In his view, the policy directive was not well thought through and will further lead to increment in prices of the aforementioned goods as importers will find other means to get forex – at a higher price – to import them.
Speaking on PM Express and monitored by norvanreports on Monday, November 28, Mr Hosi, quipped the creation of the levy, coupled with a structured policy framework for the sector, will help ensure that the country is able to produce the required quantities of rice for local consumption, thereby kicking out competition from foreign rice producers and eventually eliminating foreign rice imports.
“Rather than withdrawing FX support from importers, Government could have created the Rice Development Levy or Tax, and monies gotten from this levy will come with a clear structured framework from seed production to land tenure management, irrigation to paddy production and milling and all the banks will follow with capital to support it,” he remarked.
According to the Ministry for Food and Agriculture, local rice production can cater for 43% of local rice consumption, leaving a huge gap between production/supply and consumption by the populace.
To meet the rice consumption demand of the populace, Mr Hosi who owns a rice farm and is also into rice milling, noted that Ghana needs about 450,000 hectares of rice farm to meet local demand for rice.
Mr Hosi made the assertions speaking on the 2023 Budget Statement, which he said has no clear, definite and structured policies to develop a single sector of the Ghanaian economy, particularly the agric sector.
According to him, the 2023 Budget Statement is a ‘shock’ to businesses, given that government intends to spend more (GHS 205bn) in 2023 and as such will compete with the private sector for the limited funds available at the various banks in the country.
The Central Bank some weeks ago, announced the withdrawal of FX support to importers of rice, chicken, cooking oil, ceramic, bottled water, fruit juice and other goods.
“In accordance with the President [Akufo-Addo] directive issued at his recent address to the nation on the Ghanaian economy, on Sunday 30th October, 2022, the Bank of Ghana will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods”.
“The government will, in May 2023, that is six (6) months from now, review the situation. We must, as a matter of urgent national security, reduce our dependence on imported goods, and enhance our self-reliance, as demanded by our overarching goal of creating a Ghana Beyond Aid.
“Much as we believe in free trade, we must work to ensure that the majority of goods in our shops and marketplaces are those we produce and grow here in Ghana.
“That is why we have to support our farmers and domestic industries, including those created under the 1-District-1-Factory initiative, to help reduce our dependence on imports, and allow us the opportunity to export more and more of our products and guarantee a stable currency that will present a high level of predictability for citizens and the business community,” noted the Central Bank in announcing the new policy directive.
