Ghana’s rice and sugar market is reportedly being overtaken by smugglers as illegal imports flood the country through unapproved border routes, according to the Food and Beverages Association of Ghana (FABAG).

The Association warns that government inaction has allowed smuggling to grow into a national crisis, crippling legitimate businesses and causing massive revenue losses.

Smuggling at “Alarming Levels” — FABAG

FABAG says smuggling of rice and sugar has intensified over recent months, with Aflao and Elubo identified as major entry points where illegal activities have “virtually taken over the market.”

According to the Association, legitimate importers have been pushed to the brink, unable to compete with smugglers whose untaxed goods sell far cheaper in Ghana’s markets.

“The rice and sugar market in Ghana has been taken over by illegal traders. State revenue is being drained and compliant businesses are struggling to survive,” FABAG emphasized.

Huge Revenue Losses and Weak Enforcement

The Association points to weak border enforcement, persistent bureaucratic delays, and a significant duty gap between Ghana and neighbouring countries as key drivers behind the smuggling surge. FABAG says the State is losing millions of cedis daily due to the illegal trade.

Despite repeated warnings to authorities, FABAG says government silence and inaction have emboldened smuggling networks.

The Association described the situation as “economic sabotage” and accused the government of “negligence” that allows smugglers to thrive.

Who Benefits From Government Inaction?

FABAG questioned who stands to gain from the government’s failure to address the growing crisis. It argues that registered importers who pay taxes, follow regulations, and employ Ghanaians are being punished while smugglers operate freely.

The Association warned that if the situation persists, both the formal import sector and local rice producers will collapse, posing a threat to Ghana’s agricultural and economic stability.

FABAG’s Demands: National Crackdown and Structural Reform

The group is calling for strong, immediate, and coordinated government intervention, including:

• Establishing a nationwide anti-smuggling task force
• Overhauling border operations and tightening security
• Deploying digital border monitoring systems
• Publishing results of enforcement actions for transparency
• Ensuring collaboration between Trade Ministry, National Security, Border Patrol, and other agencies
• Reviewing taxes and tariffs to make compliance easier and reduce the incentive to smuggle

A Threat to National Revenue and Food Security

FABAG warns that continued indifference will have severe long-term consequences, including:

• Loss of vital government revenue
• Collapse of legitimate food import businesses
• Job losses across the supply chain
• Reduced competitiveness for local rice producers
• Public health risks due to unregulated products entering the market

Call for Leadership and Immediate Action

The Association is urging the government to demonstrate leadership by confronting the smuggling crisis head-on. FABAG says it will continue advocating for a fair and transparent trade environment and remains ready to collaborate with all stakeholders.

“Ghana needs strong and transparent enforcement to protect our economy, our local industries, and our future,” FABAG stated.