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Economy

Traders accuse government for food crisis

Traders in Kumasi in the Ashanti region have accused government of being the cause of the food crisis which has almost hit the entire country. They noted that cereals like rice, maize and millet are scarce on the market, noting that the government contributed to the deplorable situation. Most market women that spoke to CITY & BUSINESS GUIDE during a visit to the ancient Kumasi Central and the Asafo Markets slammed the government for creating the problem. The irate market women said the scarcity of cereals has suddenly led to a drastic increase in the prices of the few cereals that are available on the market. The women contended that they have evidence to substantiate the accusations they have leveled, against the Mills administration. Firstly, they do not understand why the government hurriedly re-introduced the 20 percent import tariff on basic foodstuffs like rice upon assumption of office. It would be recalled that the previous New Patriotic Party (NPP) government waived the 20 percent import tariffs on basic foodstuffs like rice in 2008 to help consumers. The NPP administration took that decision because it realized that almost 70 percent of the rice consumed in the country had to be imported due to shortfalls in the local rice production. The NDC government, at the time of reintroducing the 20 percent import tariffs, deceived Ghanaians that the food crisis that influenced the NPP government to reduce the import tariff was over. It again said that the move was ostensibly geared towards protecting local consumers, but this assertion has so far proved to be a hoax. CITY& BUSINESS GUIDE checks revealed that soon after the government reintroduced the import tariff, the United Nations (UN) warned of a looming food crisis across the globe in 2011. Due to these facts, the market women insisted that indeed the NDC government had proven beyond reasonable doubt that it does not care about them and their work. They noted that the government's decision has caused adverse hardship in their households as they now have to work hard to manage their homes. Most of the distressed market women said they have even withdrawn their children from school because they cannot even provide three square meals for them, let alone pay their school fees. A certain Adwoa Mansah at the Central Market, who has been in the rice business for about three decades said, "The government has collapsed our business within the two years that it assumed political power." "I hate politics, but let me call a spade a spade, the NPP government was far better than this 'killer' government which doesn't have the ordinary Ghanaian at heart." She noted that their businesses were about to collapse due to the global food crisis in 2008, but since the NPP government cared about them; it immediately scrapped 20 percent of import tariffs to save their jobs. Meanwhile, this paper gathered that though a bag of rice attracts an import tariff of 37 percent, neighbouring Cote d'Ivoire was charging a meager 12.5 percent on that same bag of rice imported into that country. This development has forced most people to adopt foul means by smuggling rice from Ghana's western borders into the country and the situation is said to be collapsing the business of genuine people that import rice into the country. Another trader at the Asafo Market, Eno Akua Afriyie could not understand why the ruling NDC government could not toe the line that the NPP administration took to save rice dealers. "My son please tell Prof. Mills to reduce either tariffs on the importation of rice or scrap it entirely at this moment that food crisis is imminent across the globe including Ghana," she said. Eno Afriyie, who has about 35 years experience in the rice business, said high import tariffs has contributed to the increase in the smuggle of rice into the country presently. She said, "We, the rice dealers, are not the only people losing, in fact, the government too is losing revenue in the form of taxes to develop the country as the perpetrators of the act usually evade taxes”. The traders unanimously asked the government to reduce the import tariffs immediately to save their businesses. Source: Daily Guide

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.