By Amin Kef (Ranger)
As rice prices soar in Sierra Leone, there is growing pressure on the Government to address the burden of importation costs by reducing or removing taxes on imported rice. This call comes amid rising global challenges and local economic strains.
The recently published ‘RAM Sierra Leone Market Prices Bulletin / Quarter 2, 2024’ by the World Food Programme (WFP) highlights a sharp increase in rice prices. Imported rice prices have surged by 15 percent from the previous quarter, while local rice has increased by 13 percent. Year-on-year comparisons show even steeper hikes of 41 percent for imported rice and 40.8 percent for local varieties.
Several factors contribute to this crisis. India, a major rice exporter, has restricted shipments to prioritize local demand, causing a significant gap in the global supply chain. Additionally, the ongoing Israel-Gaza conflict has forced ships to take longer, costlier routes, exacerbating freight costs. Other countries’ reluctance to export rice further complicates the situation.
The World Food Programme report indicates that the average Sierra Leonean’s purchasing power is dwindling, with wages stagnating against the backdrop of rising staple costs. As of June 2024, a monthly minimum wage can only purchase 34 kg of imported rice, a decline from 44 kg the previous year.
Despite a decline in national headline inflation from 47.42 percent in January to 31.93 percent in June and relative stability of the Leones against the US dollar, food inflation remains a pressing issue.
Globally, India’s export restrictions have removed 9 million metric tons of rice from the market, driving up prices worldwide. The situation is compounded by climate anomalies like El Niño, which threaten production in major rice-producing regions.
Experts suggest that Sierra Leone’s G overnment should not only reduce import taxes but also focus on high freight costs. This could help align with international standards and ensure food security for its population.
Joseph Glauber, of the International Food Policy Research Institute, warns that without alternative suppliers, countries reliant on Indian rice face increased food insecurity. The World Bank anticipates that rice prices will remain elevated into 2024, assuming India’s restrictions persist.
As Sierra Leone navigates this crisis, attention is turning to sustainable solutions and potential policy shifts that could stabilize the local rice market and cushion its citizens against further economic hardship.
