According to FABAG, the illegal trade—fuelled by smuggling through unapproved routes, particularly Aflao on the Togo border and Elubo on the Ivory Coast corridor—has “virtually taken over” Ghana’s rice and sugar market in recent months. The association warns that genuine importers and distributors of locally produced rice are being pushed to the brink as cheaper, untaxed products flood the market.

Despite repeated alerts over the years, FABAG says government response has been slow and ineffective, allowing smuggling activities to reach “unprecedented levels.”

“The primary driver of smuggling is the significant duty differential between Ghana and neighboring countries, which incentivizes traders to bypass official channels,” the association noted in a statement.

FABAG is calling for urgent government intervention and has outlined key actions needed to restore order to the market, including:

Immediate nationwide enforcement operations led by the GRA Customs Division

A complete overhaul of border management with enhanced digital monitoring systems

Public disclosure of enforcement outcomes to ensure accountability

Increased collaboration between the Ministry of Trade, National Security, and border patrol agencies

A fair review of taxes and tariffs to remove the incentives for smuggling

The association warns that if the trend continues unchecked, both the formal food import sector and Ghana’s growing local rice industry risk collapse. Beyond lost revenue, FABAG cautions that continued inaction could severely damage the agricultural sector and undermine national food security.

“Smuggling constitutes economic sabotage,” FABAG said. “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.”

FABAG in a letter reaffirmed its commitment to advocating for a fair and transparent trade environment and urged policymakers to act swiftly to protect the economy, consumer safety, and the country’s long-term development.