The Rubber Farmers Association of Ghana (RUFAG), has described calls for complete ban on raw rubber exports as false and misleading.
A recent statement by the Ghana Rubber Estates Limited (GREL) a private company, and the Rubber Processors Association of Ghana (RUPAG), alleged that exports of raw rubber are being unchecked and hence, undermine local processing capacities, threaten the country’s industrialization agenda to create jobs, and allegedly cause annual losses of up to US$100 million.
At a press conference in Accra on December 22, leadership of RUFAG, described the allegations as baseless and not reflecting realities of the country’s rubber industry.
An Executive Member of RUFAG, Michael Nyarku, said the push for an export ban by some persons, is not about protecting national industrialization agenda, but a deliberate attempt to monopolize the market, suppress competition, and force farmers to sell rubber cup lumps at artificially low prices.
The narrative that processors are the main drivers of employment in the sector, according to RUFAG, is grossly distorted as over two million dependents rely on incomes generated from rubber farming activities for livelihoods against the fewer 1000 workers in the various processing companies.
According to RUFAG, the rubber farming and trading ecosystem comprise over 300,000 rubber tappers, 200,000 carriers and loaders and about 150,000 tricycle operators involved in rubber transport.
Mr Nyarku explained that any policy that leads to monopoly pricing and reduced farm-gate prices will not protect jobs, but will rather destroy them, deepen rural poverty, and undermine social stability in rubber-growing communities across the country.
“RUFAG firmly believes that competition, not protectionism, is what will drive efficiency, fair pricing, and sustainable growth in the rubber industry. Ghana’s industrialization agenda must be inclusive and farmer-centered, not driven by narrow corporate interests” Mr Nyarku said.
The Association said allegations that exports of raw rubber are ‘unchecked’ is not true as the Tree Crop Development Authority (TCDA), requires all exporters of unprocessed rubber, cashew, and shea to be registered, licensed, with issued permits before export.
“The TCDA has also established a permanent presence at the ports to monitor compliance in collaboration with the GRA and the port authorities, making the ‘unchecked’ narrative an entirely false story”
According to RUFAG, the export market sustained farmers’ livelihoods during COVID-19, when local processors halt the purchase of rubber.
This situation pushed farmers to the brink of abandoning their farms, but exporters provided an alternative market and prevented near-collapse of livelihoods of rubber farmers.
“This is evident that, multiple markets provide security to farmers and prevent unnecessary hardship and youth unemployment, which is a major reason for the upsurge of illegal mining.
