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Business News of Monday, 28 August 2006

Source: GNA

Govt must adopt pragmatic policies to save Local Rice Industry

Accra, Aug. 28, GNA - Ghana Trade and Livelihoods Coalition (GTLC), a nationwide advocacy organization of small-farmers and producers, on Monday said the Government could make savings on the huge amount spent to import rice if pragmatic policies were adopted to increase local rice production.

The Coalition said the high level of rice imports was inimical to the development of the Local Rice Industry (LRI).

Speaking at the official launch of GTLC and the Rice Campaign Week, Mr Ibrahim Akalbila, Interim Coordinator of GTLC, said the first step was for the Government to consider the reintroduction of tariffs and non-tariff measures to protect local rice producers in view of the high level of dumping going on in the country.

He said the imposition of an additional 10 per cent tariff on imported rice for a period of between five years and 10 years could generate proceeds to be invested into the development of the rice sector and for the creation of the proposed Agriculture Fund.

Mr Akalbila said current Government's efforts to improve the rice sector had so far failed to make the desired impact on livelihoods of farmers and producers, especially the small-scale farmers, who were affected by the unbridled liberalization policies. He said rice as a crop transcended the categorization as food because of its social, economic and health implications on the country. There is, therefore, the need to review the implementation of the existing policy framework to boost rice development.

Mr Akalbila said small-scale farmers and producers must be supported by the Government to evolve as businesses capable of sustaining productivity and contributing more to the development of the country.

In addition, efforts should be stepped up on value addition to rice at the rural areas to remove the impurities and stones. Mr Akalbila called on the Government to work with organized groups in the districts that were into rice processing to acquire rice-parboiling equipment and to be trained on how to use them. He said GTLC would work with like-minded organizations to put pressure on the Government to act and to help to restrain the international financial institutions from dictating terms, which had negative influences on the country's development. The Coalition seeks to get the Government to institute measure to curb the unbridled trade liberalization that is injurious to the development of the local rice industry.

It also advocates the appropriate allocation and utilization of public and private resources to increase productivity to ensure food and income security, good quality yields and production.