The government through the Ministry of Commerce and Industry (MOCI), has disclosed that the Indian Government has announced a reduction in export duty on parboiled non-basmati rice, effective September 27, 2024.
The export duty, according to the Ministry of Commerce and Industry, has been reduced from 20 percent to 10 percent, so it comes after India imposed a 20 percent export duty in August 2023 as part of its measures to address rising domestic food prices due to below-average rainfall.
Owing to the fact that rice is the staple food for the vast majority of Liberians, the Commerce Ministry said it is fully aware of the critical role this commodity plays in ensuring food security in Liberia.
As a result, the reduction of the export duty by India, the world’s largest rice exporter, brings a significant opportunity to stabilize rice prices in Liberia and allay fears of potential price increases due to the earlier 20 percent export duty.
According to a Ministry of Commerce release, the Ministry disclosed that it is working in collaboration with key stakeholders, assuring that they are committed to assessing how the new reduction in export duty will impact the price of rice in the Liberian market.
The Ministry further revealed that it has already initiated consultations with rice importers, as well as the ‘Rice Committee’ established by President Joseph Boakai at the beginning of this year.
“These discussions will focus on ensuring that the benefits of this reduction are passed on to the Liberian people in the form of stable rice prices.
The Ministry would like to assure the public that it is taking every necessary step to work closely with all relevant actors in the rice importation and distribution chains to monitor and assess the impact of the price.
“The reduction in export duty is expected to ease cost pressures on rice importers, thereby contributing to the stabilization of rice prices across the country. As rice remains a vital food source for Liberian households, MOCI is committed to ensuring that this positive development translates into tangible benefits for the population,” the release said.
The MOCI release added, “The Ministry will continue to engage with all stakeholders and provide timely updates on the outcomes of these discussions, and we reassure the public that every effort is being made to ensure that the reduction in India’s export duty leads to the sustained availability of rice at affordable prices for all Liberians.”
Meanwhile, the Ministry of Commerce had also announced a downward adjustment in the prices of petroleum products on the Liberian market, effective October 4, 2024.
Following the decision taken in collaboration with the Management of the Liberia Petroleum Refining Company (LPRC), the prices of gasoline (PMS) have been reduced by US$0.15, while fuel oil (AGO) has been reduced by US$0.20.
As per the new price ceiling, the wholesale selling price for gas (PMS) is US$3.70, while the retail pump price is US$3.98 or L$775.00.
For fuel oil (AGO), the new wholesale price is US$4.03, while the retail pump price is US$4.31 or L$840.00.
According to the Ministry, the CBL exchange rate used in determining the Liberian Dollar equivalence of the new price ceiling for petroleum products (gas and fuel oil) is LR195-US$1.
The release further asserts that through its Inspectorate Division, the Ministry will be closely monitoring the process to avoid arbitrary hikes in the pump prices of gasoline and fuel oil on the local market.
The release added that the Ministry will also be closely monitoring the effectiveness of the price circular to ensure that importers do not undercut fellow competitors on the market.
