By Precious D. Freeman
Several protesters who stormed the EJS Ministerial Complex during President Joseph Boakai’s first cabinet retreat, called for the dismissal of the Commerce Minister, Amin Modad, for what they termed as his complacency in yielding to rice importers’ demand on the increment.
According to the protesters, who were mainly young men believed to be influenced by elements in the opposition, they insisted that Minister Modad was not suitable for the position and that he must be dismissed.
“How will they increase the price of our stable food, how do they expect us to survive? they should rethink this issue because Liberia is all we have,” they realized.
However, three of the disorganized protesters were allegedly arrested by the Police Anti-riot Unit, while attempting to prevent President Boakai and the entourage convoy from entering the Complex.
It can be recalled that the government through the Minister of Commerce and Industry 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.”
Addressing the Ministry of Information, Cultural Affairs and Tourism (MICAT) regular press briefing in Monrovia on Monday, May 19, Minister Modad disclosed that in February this year, the government received a communication from rice importers citing several previous communications addressed to the past government, requesting an increase in the price of rice on the local market from US$17 to US$20.
According to him, the importers claimed that a 20% surcharge was 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.”
Following the request, Minister Modad disclosed that the government requested a three-month grace period from the rice importers to assess all issues surrounding the need for an increment.
Minister 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.”
Minister Modad 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.”
However, President Boakai’s stance validated previous suspicion that Minister Monday had yielded to demand by the ‘Rice Cartel’ without the general agreement of 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.
