By Precious D. Freeman
The government has reduced the wholesale price of the 25kg bag of the Indian Parboiled Rice.
The current stock will be reduced from $17 to $16.75 starting on Monday, February 19, 2024.
Addressing the press over the weekend, the Minister of Commerce, Amin Modad, mentioned that the Rice Importers Association of Liberia submitted a communication to the government in October 2023 requesting that the wholesale price of the 25kg bag of Indian Parboiled Rice be adjusted from $17 to $20 to reflect unfavorable and uncontrollable external factors that have impacted the cost of importing rice.
He added that these factors included disruptions in shipping routes through the Suez Canal due to the crisis in Ukraine that increased the costs of shipping and a new 20 percent export tariff imposed by the Indian Government on the export of the Indian Parboiled Rice.
The then administration stated that the decision would be left to the new administration after the legislative and presidential elections.
The Minister added that the Rice Importers Association resubmitted their request for the increase on February 8, 2024.
Upon his appointment as Minister of Commerce and Industry, with a mandate from President Joseph N. Boakai to place urgency on the prices of essential commodities, he initiated discussions between the Ministry of Commerce and Industry and the Rice Importers Association.
He explained that for and in consideration of the discussion held with the Rice Importers Association of Liberia, they all agreed that the confirmed stock of 120,000 Metric Tons of 25kg bags of Indian Parboiled Rice in the country, is sufficient to last for the next three to four months, and new orders are expected in the country between May and June.
He furthered, “They also agreed that the wholesale price of the 25kg bag of the Indian Parboiled Rice on the current stock will be reduced from $17 to $16.75 starting on Monday, February 19, 2024.
“To provide the citizens with more affordable choices in the wake of global changes impacting the price of rice and other commodities, the Rice Importers Association will import and distribute, along with the 25kg bag of Indian Parboiled Rice, an alternative rice variety to be sold at a lower price. The parties agreed to conduct periodic reviews where necessary to determine the price of the commodity,” he added.
Minister Modad continued, “The rice importers will collectively invest in local rice production to support local farmers through the MOCI Value Addition Program, reduce the dependence on imported rice, and boost the national rice reserve as a buffer against external shocks. The Ministry of Commerce and Industry and the Rice Importers Association will begin formulating the modalities for this initiative as early as March 2024.”
