OPDAG President Paul Amaning
The Oil Palm Development Association of Ghana (OPDAG) has raised alarm over the devastating impact of smuggled vegetable oil on local producers and farmers, warning that the illegal trade is driving down prices and threatening the sustainability of the sector.
Speaking to journalists at the maiden Ghana Tree Crops Investment Summit and Exhibition (GTCIS-2026), held at the Accra International Conference Centre on February 20, 2026, OPDAG President Paul Amaning highlighted that farmers across Ghana are losing millions of cedis annually due to cheap imported palm oil flooding the market.
Amaning explained that processors like Garbin Oil Mills, Benso Oil Palm Plantation and GOPDC are unable to compete with smuggled oil, forcing them to offer lower prices for fresh fruit bunches to farmers.
“They have to discount prices by as much as GH¢700 per tonne. This is costing the average farmer nearly GH¢1 billion every year,” he said.
He noted that smuggled oil is sold at significantly lower prices because importers evade taxes. For instance, a 25-litre gallon of local oil may retail at GH¢580 but smuggled oil sells for as low as GH¢420, creating an uneven playing field.
According to OPDAG, smuggling has been ongoing for over four years, despite government directives requiring all vegetable oil imports to pass through Tema and Takoradi ports.
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Amaning described how trucks loaded with thousands of gallons of oil continue to enter Ghana through land borders, undermining both regulatory systems and local businesses.
“The problem isn’t just lost revenue; it’s a threat to the survival of our farmers and processors. If the trend continues, local producers cannot recover costs or remain competitive,” he stressed.
OPDAG is urging government agencies, including the Tree Crops Development Authority (TCDA) and the Food and Drugs Authority (FDA), to strengthen market monitoring and ensure only legally imported and properly registered oils are sold.
Amaning proposed empowering TCDA to certify all vegetable oil imports and equipping FDA to remove unregistered products from the market.
“Any oil not registered with FDA should be treated as smuggled. We need a system that protects farmers, processors, and ultimately consumers,” he said.
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