The Food and Beverages Association of Ghana (FABAG) has vehemently opposed the government’s proposed import restriction on some selected products.
According to the Executive Chairman of FABAG, John Awuni, the restriction would exacerbate food inflation and foster rampant corruption if granted.
He questioned the government’s rationale behind the initiative, emphasising the detrimental impact it would have on the country’s economy, which is already grappling with high food inflation.
“You cannot say you are restricting the import when you don’t have stock in your warehouses. Then again, it is not as if you have never restricted import. You have already restricted imports to the extent that some of your products have over 60% tax on them. If this is not enough restriction to push your local production, what kind of restriction do you want?” Mr. Awuni quizzed.
Food inflation recorded the highest rate among all the components in the October 2023 inflation rate.
The increase in food inflation indicated a jump of more than 3 per cent from the previous rate of 37.2%.
“For the month of October, Food inflation was 43.7%. Last month’s Food inflation was 37.8%. A careful study of the figures show that month-on-month Food inflation was 3.2%.” Government Statistician Professor Samuel Annim indicated.
The Trade and Industry Ministry has tabled a bill in parliament outlining the government’s intention to impose import restrictions on 22 commodities, including poultry, animal and vegetable oils, margarine, fruit drinks, soft drinks, mineral water, noodles and pasta and ceramic tiles.
The rest are corrugated paper and paperboard, mosquito coils, insecticides, soaps and detergents, motor cars, iron and steel, cement, polymers (plastics and plastic products), fish, sugar, clothing and apparel, biscuits, and canned tomatoes.
The government said the move served as an effort to stimulate domestic production.
But Mr Awuni labelled it as a “political ploy” to benefit some politicians.
“This particular move of the government is a shot in their own foot. It is a move to create corruption and create money for a few people,” he said on Citi TV on Thursday, November 23.