IPNEWS: Government of Liberia says as part of its determination to resolve the rice situation in Liberia, is expected to bring in shortly over three thousand metric tons of rice shortly.

Making the disclosure to Reporters at a special Press Briefing Wednesday, Foreign Affairs Minister Sara Beysolow Nyanti said the huge quantity of rice is expected to come from the Japanese government.

She stressed that the rice is a humanitarian gesture to the Liberian people based on bilateral negotiations by the Liberian government.

According to her, the rice donation is a proceed of the Liberian government recent visit to the Republic of South Korea, sidelines Agriculturally based meetings with the aimed at bringing Korea Agriculturists to the country for investment purposes.

Recently President Joseph N. Boakai, constituted a Committee on Rice to ensure the stability of the Country’s staple.

The 15 men committee is expected to undertake the following:

• Formulate policy to ensure constant and steady supply of rice in the Country.
• Formulate strategy for accelerated local production of rice and import substitution.
• Ensure Liberian participation in the importation and distribution of rice throughout the Country
• Formulate policy for the effective reactivation and management of the Rice Stabilization Fund
• Ensure database of rice, price comparison of major rice producing countries and the grades of rice

The constitution of the committee came on the back few days after President Joseph N. Boakia  averted a national crisis over what political pundits call ‘potential risk’, when he told rice importers majority of whom are Lebanese merchants that the government of Liberia will not tolerate any ‘increase in rice price’!!

President Boakai statement was contained in an update by Presidential Press Secretary, Kula Fofana, from a closed-door meeting held with major rice importers Tuesday, May 21, 2024, at the Executive Mansion.

The Ministry of Commerce had earlier announced that government had negotiated with a ‘ rice cartel’ to dropped their demand of an increment of a 25kg bag of Indian rice previously sold at US$16.50 to US$20.

Hon. Amin Mondad Minister of Commerce and Industry, at a Ministry of Information press briefing told Journalist that the government had agreed in principle to increase the price of rice from US$16.50cents to US $18.50 cents.

However, President Boakai stance has now validated previous suspicion that the Hon. Amin Mondad Minister of Commerce and Industry, had yielded to demand by the ‘Rice Cartel’ without the general agreement of the Boakai’s administration.

Following a brief meeting between President Joseph Boakai and rice importers in Monrovia on Tuesday, President Boakai has mandated rice importers not to increase any price of rice, and that the price of a 25kg bag of rice remains the same.

Minutes after the Ministry of Commerce and Industry announced an increment of the commodity on Monday, May 20, prices of a 25kg bag of rice jumped from $16.75 to $20.050, in many parts of the city center, with reports of as high as US$ 22.00 in cities such as Kakata, Harel, Buchanan, Ganta, and Gbarnga.

The History of hike in prices of Liberia stable food rice remains fresh on the minds on many in 1979, when the Progressive Alliance of Liberia called for a peaceful demonstration in Monrovia to protest the proposed price increase. The peaceful demonstration on April 14, 1979, was carried out by at least 2,000 activists on the Executive Mansion which turned bloody settling the paste for Liberia’s ugly past of ten years of civil wars.

On Monday, May 20, 2024, the Government of Liberia (GOL), through the Minister of Commerce and Industry Amin Modad, announced that it has agreed to a request from importers to increase the price of a specific brand of rice on the local market, describing the rice industry as a “cartel.”

A investigation by the authoritative Independent Probe Newspaper uncovers how rice importers had earlier written to the Ministry of Commerce and Industry, proposing a minimum price of US$20 per 25kg bag of parboiled rice to offset the rising cost of importing rice to Liberia.

The importers claimed that a 20% surcharge is being levied on the commodity by the Indian government.

“India imposed a 20% surcharge on parboiled rice, which has impacted the price of rice. Additionally, they (rice importers) cited the war in Ukraine and issues in the Middle East that also impacted freight, insurance, and timing.”

Major importers of the commodity have been playing politics and threatening shortages if the government does not agree to a price hike due to the 20% export tax extended by India on parboiled rice even though the government of Liberia, continued to take steps to advert the hike by these rice importers by suspending import tariffed  to offset export charges experienced by the importers.

To advert this increment in rice price, both former president George Weah and President Joseph N. Boakai issued three separates executive Orders suspending import tariff on rice is classified under tariff numbers 1006.30.00, in packing of more than 5kg or in the bulk; 1006.30.00, in packing of at least 5kg and 1006.40.00 (broken rice) under the Revenue Code of Liberia Act of 2000.

The issuance of Executive Orders by both presidents is intended to bring relief to the Liberian people, underscoring the government’s commitment to ensuring that prices of certain commodities on the market, including rice, remain affordable as not to impose unnecessary burden on the people, yet the rice cartel continued to roam at the detriment of the ordinary people who barely get ends meat at the close of day.

Amidst this looming potential for a national crisis, members of the Honorable House of Representatives have unanimously summoned to plenary the Honorable Minister of Commerce and industry to explain in detail reasons for the speedy increment in the price of 25k bags of rice from ( US$16.50cents to US $18.50 cents).

The Plenary took the decision on Tuesday ( May 21, 2024) after Hon. Frank Saah Foko Representative of District#9 Montserrado County and Hon. Mathew F. Joe Representative District#3 Grand Bassa County separately wrote that honorable body.

Both Hon. Amin Mondad Minister of Commerce and Industry and the Minister of Agriculture are expected to appear before plenary next Tuesday ( May 28, 2024) to ascertain the major reasons behind the increment in the price of 25k bags of rice.

At a press conference Monday, May 20, Minister Modad stated that the government had requested a three-month grace period from the rice importers to assess all issues surrounding the need for an increment.

Modad said the government’s request was intended to ensure that the right decision was made for Liberians.

“We also negotiated with them that our priority is to reduce the cost. If we were to consider all the issues they raised to increase the price of that particular rice, we obligated them to ensure that there were several varieties of rice on the market that would be sold for US$16 or less. They committed to do so.”

According to him, the government also emphasized that rice production remains a priority under the Boakai-led administration to promote food sufficiency during the meetings held with the importers.

He pointed out that instead of increasing the rice price from US$17 to US$20, the government negotiated with the importers to reduce the cost to US$16.75 as a “temporary measure for a new government.”

Minister Modad added that while the government and the importers agreed on the US$16.75 reduction for a 25 kg bag of rice, the ministry was verifying the facts supporting the importers’ request for an increase to US$20.

He said the surcharge was increased to about 24% on parboiled rice, which led to rumors of a shortage of the commodity on the Liberian market, contradicting the government’s commitment to ensuring no shortage of basic commodities, including rice.

According to him, importation permits were given to additional importers to prevent the shortage of the nation’s staple food.

“During this time, we also, in our effort to ensure that Liberians participate in all sectors, granted IPDs to three or four new Liberian enterprises to expand the importers of rice.”

He claimed that the first consignment of rice, under the Unity Party-led government, arrived in the country on April 22 this year.

Since the importation, vessels bringing in rice have faced constraints at the port, causing importers to incur extra fees for storage.

According to him, the ministry is currently working with authorities of the National Port Authority (NPA), Liberia Revenue Authority (LRA), and APM Terminals to address the situation.

“Our team has broken down the cost of rice, solicited invoices from India and other countries, and invited distributors to bring in new importers who can supply rice at a competitive price. It is a difficult process. The rice industry is like a cartel. So far, we have not been able to get any rice at a competitive price.”

On the reasons for increment, Minister Modad said the government had verified all the points made by the rice importers as reasons for the price hike, noting that some costs can be reduced domestically, and they are working on that.

Last week, he disclosed that the government received a communication from importers stating they have adhered to the previous agreement with the government, but the high cost of freight prevents them from continuing to sell at US$16.75.

“We had several meetings with them (rice importers) over the last few days. As the President has emphasized, there is no other way around this rice issue and self-sustainability unless we are able to grow rice.”

Minister Modad observed that financial and global issues continue to affect the stability of rice prices in Liberia, causing market prices to fluctuate.