The Food and Beverages Association of Ghana (FABAG) has raised the alarm over the surge in smuggling activities that have now taken over the country’s rice and sugar market.

In a letter to the Ghana Revenue Authority (GRA), the sector body warned that legitimate importers and distributors are being pushed to the brink by the influx of smuggled goods.

According to FABAG, unapproved routes at key entry points such as Aflao from Togo and Elubo from the Ivory Coast have been exploited to flood the market with massive volumes of rice and sugar.

The association said this illicit trade has crippled fair competition and deprived the state of millions of cedis in taxes and duties.

“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 noted.

FABAG stressed that while legitimate businesses comply with tax regulations and create employment, illegal traders continue to benefit from the significant duty differential between Ghana and neighbouring countries.

This gap provides strong incentives for evasion and exploitation of cheaper duties abroad.

The association has called for immediate, concrete measures to halt the tide of illicit imports.

Among its recommendations are the deployment of a nationwide task force led by GRA Customs, overhauls in border management, including digital monitoring systems, public disclosure of enforcement results, and stronger collaboration between the Ministry of Trade, National Security, and border patrol units to dismantle smuggling cartels.

FABAG also urged a fair review and adjustment of import taxes to level the playing field.

“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 letter warned.

The association added that if the trend continues unchecked, both the formal food import sector and local rice production could collapse, leading to massive revenue losses and a weakened agricultural sector.

FABAG urged government authorities to take immediate steps to protect the economy, safeguard public health, and secure the nation’s future.

Rev. John Awuni, Chairman of FABAG, concluded the letter by pledging the association’s continued engagement with stakeholders to ensure a fair, transparent, and accountable trade environment that benefits both national revenue and consumer safety.