MONROVIA: Nearly a year now since the Government of Liberia (GOL), and rice importers reached an understanding for provision of subsidy, it appears that the deal failed as some importers are said to be hiking the price of the nation’s staple food, rice, at the detriment of the vast majority of the poor in the country.
Authoritative sources within the corridors of state power informed The ‘Investigative’ INDEPENDENT that government has promised the importers to help ease some constraints in getting the commodity in Liberia due to international trade challenges.
Reports also had it that a subsidy of USS$14 million was agreed upon by the government and importers which would have been placed in the 2022 National Budget.
Sources familiar with the deal said the government, however, failed on its commitment to subsidy the rice market through the 2022 National Budget with an amount of US14m aimed at alleviating the financial constraints faced by major importers of rice.
There are growing concern among citizens of a possible hike in the price of rice on the local market.
Our reporter who took a facts-finding tour in the densely populated commercial enclave of Red-light in Paynesville City noticed a sharp increase in the price of a 25kilogram bag of rice from US$15 or its equivalence of L$2,250 to L$3000 which is the equivalence of US$20 (US$1 to LD$150).
Prior to this latest but unofficial price increment of a 25kg bag of rice from US$15 to US$20, the price of the regular 25kg bag of imported rice was sharply increased from US$13.00 to US$15.00, which resulted into widespread public outcry.
According to multiple sources, the US$14m deal emanated following weeks of rice shortage on the local market, which was said to have been caused by hoarding of the commodity by some unscrupulous business entities.
In 2021 when some reporters toured several rice storage facilities at the Freeport of Monrovia, it was observed that enough quantity of rice was in the country at the time.
The new price increment, although unofficial, comes at a time when the Liberian nation is preparing for the crucial presidential and legislative elections in 2023.
Rice became a “political commodity” since April 14, 1979, following the infamous “Rice Riot” in Monrovia that led to the killing of over 50 people and hundreds of others injured during the erstwhile administration of President William Richard Tolbert (late).
The “Rice Riot” emanated from a formal pronouncement by the then William Tolbert administration to increase the price of PL40 100lbs bag of rice on the local market, aimed at encouraging Liberians to produce their own rice and feed themselves as opposed to regular importation of the commodity, causing the Liberian government an estimated US$200m per annual.
In recent times, The ‘Investigative’ INDEPENDENT has gathered that some importers, not named, allegedly hiked the price rice by hoarding the commodity under the pretext that the commodity faces shortage in the country at the moment.
It has also been gathered that the previous US$2.00 which the importers demanded from the government or to reduce some taxes on imported goods has been surreptitiously increased to US$7.00 against the best interest of the vast majority of the poor citizens.
Prior to the increment, rice was sold at US$13 which is equivalent to LD$2,210 (Two Thousand Two Hundred and Ten Dollars Liberian Dollars).
Many citizens are practically jittering as they are seen in long queues around Monrovia and its immediate surroundings to purchase few bags of rice with a new price ceiling of US20, an equivalence of three thousand Liberian dollars, at the exchange rate of LD$150 to one United States dollar (US$1.00).
Our contacts with the rice importers informed this paper that the artificial shortage, coupled with new price hike is gaining grounds in the local market.
Currently, Liberia’s poverty rate stands at 52.1 percent and has run for two conservative years, 2019-20. Extreme poverty incidence has also increased and poverty reduction is expected to resume from 2022 onwards, but the recent shocks have set progress back by 5 years.
Initially, speculations were abound that Rice importers were hoarding the commodity, thus creating an artificial shortage of the commodity on the local market.
But, interestingly, the government of Liberia through the Ministry of Commerce and Industry has been informing the public that it is aware of the difficulties facing rice importers but mentioned that amidst these external factors, the importers have agreed to maintain the price of rice on the Liberian market.
Commerce Minister Mawine Diggs told journalists during the last rice crisis that: “It is important to note that the five rice importers have engaged the government of Liberia on the need to increase the price of rice by two dollars due to increase in freight charges and other negative global impact like COVID-19.”
The Commerce Minister noted at the time that the increase in freight charges at the Freeport is adversely affecting trade and commerce in the country, stressing that, the government has taken note of the situation and was doing everything possible to maintain the US$13 price of rice on the local market.
Meanwhile, some Liberians, in an interview with this paper recently described the regular rice price hike as a well calculated scheme allegedly involving some unnamed officials of government and some rice importers. Sources said the situation, if not urgently addressed, could lead to serious political tension in the country.
They said since incumbency of President George Weah-led administration, this is forth time the price of the nation’s staple has been increased sharply.
This will be too much of a burden to bear for the citizenry,” Edith Karso, a mother of six said.
According to Madam Karso, apart from rice, importers of essential goods are also increasing their prices such as beverages, chicken feet, pig feet, and meat among others.
Joe Blayon, a resident of Gardnesville and a jobless man, called on the government to ensure that the situation is addressed as soon as possible so that it does not undermine some of the gains made thus far by President Weah.
“It is unfortunate that increment of rice price will resurface in Liberia and for importers to secretly increase rice price, Blayon said in an angry tone.
