Rice importers cry out over cedi’s depreciation

The fast depreciation of the cedi against the United States dollar, the major currency used for imports, is beginning to bite hard.

The cedi has lost significant value in the first two months of the year, raising concerns about the impact on major imports such as agricultural produce, mainly rice among others.

Reports say, the cedi has lost more than seven per cent of its value making it one of the worst performing currencies in Africa within the period.

The development is making rice importers especially, to feel the pinch, following the fall of the local currency.

According to them, the falling cedi and what they described as the numerous taxes imposed on imports are threatening the survival of their businesses, a development which might affect the quantities imported to meet local demand for the agricultural produce which is one of the major staples for Ghanaians..

It is presently trading at about GH¢6.70 at the interbank market while it is higher between GH¢7.1 and GH¢7.2 on the black market.

Advantage

Presently, the country imports between 60 to 70 per cent the of the total amount of rice consumed in the country while the remaining is grown locally.

It is not clear whether the development has presented itself as a good omen for the country which is often slow in taking advantage of such opportunities to scale up its local production to meet demand.

Much as there are some interventions through the Planting for Food and Jobs initiative by the government to transform the agricultural sectors, rice imports has not reduced, forcing the country to rely on imports to patch the gap in rice production.

Suffering the brunt

Imaginario Company Limited, an importer and distributor of Peacock Thai Hom Mali Jasmine Rice in the country, is one of the firms suffering the brunt of the depreciating cedi.

Speaking to the Graphic Business during a market activation at Madina in the Greater Accra Region on February 26, the Sale and Marketing Executive of the Imaginario Company Limited, Ms Ama Asantewaa Adjem, said the rapid fall of the cedi was impacting the operations of her firm, which is into the import of rice.

She said measures needed to be put in place to halt the depreciation of the Ghana cedi against major international currencies.

The depreciation in the value of the cedi was making life difficult for traders especially those in import business.

Market activation

Ms Adjem said the market activation formed part of Imaginario’s effort to draw closer to its old customers while attracting new retail customers.

“Our mission is to bring quality products to the consumer but more importantly to adhere to rules and regulations. Therefore, we will continue to do our best to bring quality products to our customers within the laws of the country.

“The rice market is saturated with many products but we stand out. We are positioned in advantageous areas in order to reach our customers,” she said.

Rice import

Ms Adjem stated that the company planned to import rice between 4,000 and 6,000 tonnes annually.

“We are a new company but we deal in quality products for the market and our target is to import and distribute between 4,000 and 6,000 tonnes of rice every year,” she said.

The company’s foundation is based on entrepreneurial excellence that is aimed at generating value for stakeholders.