President Akufo-Addo with members of the Oil Palm Development
Association of Ghana at the Jubilee House
Producers of palm
oil are pushing for a review of the policy that allows the importation of the
product into the country.
A recent
announcement by government reduced import levy on palm oil by 50 per cent, but
the Oil Palm Development Association of Ghana (OPDAG) says the reduction is
having a toll on their businesses, for which reason it wants the levy to be
increased to save the local market.
Speaking at a
meeting with President Akufo-Addo at the Jubilee House last Tuesday, president
of the association, Samuel Avaala, indicated that the impact of the new import
tariff policy was adversely affecting the local palm oil industry.
“The local
refineries and manufacturing industries are no longer viable to operate; the
refineries are unable to sell their products competitively against imported
vegetable oil which has become cheaper as a result of the above policy which in
essence has subsidized the imports,” he pointed out.
“The cost of a
25-litre vegetable oil produced locally is sold on the market for GH¢140
inclusive of the duty, levies, VAT and logistics. But the imported vegetable
oil products are sold on the market at the price of GH¢113,” he added.
Prior to the
passing of the 50 per cent benchmark policy, the association, together
with the Ministry of Food & Agriculture and the Customs Division of Ghana
Revenue Authority, was fighting the practice of undeclared vegetable oil
imports.
“This policy has
legitimized under invoicing, hence the flooding of our markets with cheaper and
substandard vegetable oils. The phenomenon of under-declaring and
under-invoicing is costing about three million dollars (US$ 3,000,000) revenue
loss to the state per month,” he revealed.
As a result, the association
wants government to consider exempting vegetable oil (palm oil) from the 50 per
cent reduction on the import benchmark value.
It also wants the
importation of vegetable oil to be restricted to the Tema and Takoradi ports of
entry and none other in order to control smuggling as it has been done for the
textiles industry.
In his response,
President Akufo-Addo noted that a country like Malaysia picked the oil palm
business from Ghana and has developed it into a $16-billion dollar industry per
year. He said that is facing serious challenges at the attempts to develop the
sector.
“The issues that you have brought here are very important issues for us in Ghana and they are matters which we have to address. I want you to have a clear understanding that the overall posturing of my government is to be very sympathetic to your development. I think it will make a lot of sense for Ghana if we could find a consensus and a meeting of minds on how to address the challenges that are bothering you, because ultimately we will be the big gainers of it,” he told members of the association.
By Charles Takyi-Boadu, Presidential Correspondent
