–Rep. Kogar Says US$35M Has Been Allotted in 3 Budget Years for Importers
IPNEWS-Monrovia: In the wake of Tuesday’s scramble for rice near a warehouse of a local rice importer in Clara Town on Bushrod Island, Commerce Minister, Mawine G. Diggs, has assured Liberians that the current stock of rice in the Country can serve the market up to the arrival of the next vessel expected here soon.
“We call on the public to remain calm and refrain from panic and retailers to desist from hoarding the commodity”, Minister Diggs quoted by a Ministry of Commerce press release issued on Tuesday, October 4, 2022 says.
Several hundreds of retailers, some disabled, from near and far jam packed the Fouani Brothers ware house on Tuesday, screaming and pushing each other in a scramble for the Nation’s staple food, rice.
Some said they have spent several days and nights outdoor in long queues, but have still not been served. ‘We are suffering. You have to buy a ticket for Twenty United States Dollars ($20USD) as a prerequisite to be served, but still we can’t see the rice,” they said in distress.
According to Minister Diggs, beginning mid-October to early November this year, subsequent supplies of rice totaling over 150,000 metric tons will arrive in country to supply the market up to the early part of next year.
Rice dealers struggle in long queues to hustle buy rice from rice importers
She said the anticipated consignment of rice will be an addition to the 22 thousand metric tons expected here in the coming days.
“We therefore encourage businesses to continue to carry out unrestricted sale of rice, void of price hiking and profiteering at the expense of the ordinary people,” the Commerce Minister further quoted by the press release noted.
She warned that inspectors of the Ministry of Commerce and Industry along with National security apparatus will not hesitate to take actions where necessary against anyone caught in violation while closely monitoring activities in the market.
“The Government of Liberia remains committed to its Pro-Poor Agenda by ensuring rice and other essential commodities remain available and affordable.”
Minister Diggs recalled that the Government over the last five years has worked with rice importers to keep the price of rice affordable for the Liberian people.
She further recalled that over a year ago importers requested the Government to abandon this policy and add $US2.00 to the price since they were selling at a loss.
Diggs said in spite of the importers’ action, the Government chose to remain committed to its regulated price of rice, and subsequently in September of 2021 the Government of Liberia began a program to partially subsidize the high cost associated with the importation of rice due to increase in freight and other global supply chain issues.
“Over the last two fiscal years, the Government set the import subsidy at US5.5million in the Special 2021 budget and US$11 million in the current 2022 budget, respectively,” the Commerce Minister said.
She said to date, about US$14 million has been given to importers.
Minister Diggs admitted that although there has been delays in the incoming consignments due to the vessel restrictions resulting from the SAFE NOTICE issued by the National Port Authority on the 10th of August 2022, sufficient rice has been supplied to retailers to serve the general public.
“High regional pricing of rice above the price in Liberia, has placed significant pressure on the buffer stock in Liberia. Hence, this price discrepancy has given retailers the incentive to hoard rice in order to sell across the border for the sake of profiteering,” the Commerce Minister concluded in the press statement dated October 4, 2022.
Deputy Finance Minister Samora Wolokolie and Rep. Samuel G. Kogar of Nimba County
In a related development, a ranking member of the House of Representative on Commerce and Trade, Rep. Samuel G. Kogar, appearing on Spoon Talk recently disclosed that the Liberian government has allotted US435 million over three budget year-period as subsidies to rice importers to avoid increase in the price of rice on the market, the country’s staple food.
Rep. Kogar said with US$35 million allotted over three budget years as subsidies for rice importers, it is hard to comprehend why rice importers are yet to given the subsidies set aside by national government.
The Nimba County Representative disclosed that in the 2019/2020 budget, US$17 million allotted as subsidies for rice importers, while in the 2020/2021 budget the government allotted US$7 million as subsidies for rice importers; as for the current budget year2021/2022 the government has allotted US$11 million as subsidies for rice importers.
According to him, the then acting Minister of Finance Samora Wolokolie claimed that the Liberian government had disbursed US$5 million to the Ministry of Commerce and Industry to give rice importers subsidies. However, the lawmaker said the Commerce Ministry pushed back on the issue, stating it only received US$3.5 million from the Finance Ministry; leaving the question of why pay the money to Commerce Ministry instead directly to the rice importers.
Kogar blamed the Legislature; adding, “We allowed the Speaker of the House of Pro Tempore of the Senate to come from one side,” so there is no argument the issue.
He further noted some of the rice monies were left in limbo as the budget collapsed. “When the government is focused on one side, people get biased,” he pointed out, adding “once the budget expires, it becomes mute.”
