CAPITOL HILL, Monrovia – In the wake of the pronouncement by Commerce Minister Amin Modad that the Government of Liberia has given in to importers’ demand to increase the price of rice on Liberian market, the House of Representatives has invited the Ministers of Commerce and Agriculture to appear before it full plenary next Tuesday, May 28.
By Gerald C. Koinyeneh – [email protected]
The motion, as proffered by Rep. Ellen Attoh Wreh (District #3, Margibi County) and amended, called on Minister Modad and Agriculture Minister Alexander Nuetah to appear and explain in detail reasons behind the move, and to outline sustainable plans to solving the aged-old rice problem.
Plenary’s decision followed two separate communications from Reps. Frank Saah Foko (District #9, Montserrado County) and Matthew Fairplay Joe (District #3, Grand Bassa County) seeking the House’s indulgence to invite the Commerce Minister following his pronouncement about the increase.
The lawmakers, in their communication warned that toying with the price of rice has had a historic negative impact, and as such decision in increasing the price of the nation’s staple should be carefully examined.
Said Rep. Foko: “We can vividly remember on April 14, 1979 that the proposed increment in the price of a bag of rice left unending scars on many Liberians. This eventually culminated in the 1980 bloody coup that ran into the 1990 war and heightened division until date. Our citizens are impoverished and struggled by the days to get earns means, which signals a huge gap between the haves and have-nots. With the government attracting limited investment opportunities, this latest move is geared to create more hardships, unbearable and consequential suffering for the ordinary Liberians.”
Minister Modad, in the pronouncement on Monday clarified that not all variety of rice price increased. According to him, the increment of the price of rice to US$18.50 is restricted to Indian parboiled rice and does not affect other brands of rice on the market.
“The increment doesn’t impact any other rice on the market. Our Inspectorate will be very vigilant to ensure that rice importers do not capitalize on this to increase the price of white rice or the 10% or 25% Indian parboiled and other rice varieties.” He said importers have also brought other varieties of shorter-grained rice that will remain at US$16 for a 25kg bag.
But Rep. Foko said the new price is unacceptable. “This new price increase is troubling for our people both far and near, thus the harsh realities of this exercise have the proclivity to push other commodities higher as well and cause havoc in our nation. As you may be aware, this proposed astronomical increase of $18.50 cents is a Monrovia price, least to think about our people living in towns and villages with deplorable roads condition that which will stimulate dramatic escalation in price variations because of the difficulties faced in transporting commodities to rural communities. At the result, our people will feel the pinch of the insensitive and unimaginable raise in the price of an essential consumable.”
He added: Honorable Speaker and distinguished colleagues, I would like to draw your attention to the fact that rice is a staple food for Liberians and as well a political commodity, for which when there seems insecurity, such matter must at all times be treated with ultimate urgency to avoid plunging situations that have the propensity to create instability.”
His colleague, Rep. Joe agreed.
“Considering our ugly past with respect to the riot of April 14, 1979, and relative to the proposed rice increment, I humbly request this august body to invite the Minister of Commerce, Mr. Amin Modad, to appear before us and give detailed written information that informed his decision to announce an increment in the price of the 25kg rice,” said Rep. Joe in his communication.
“As apple is to the Americans so as rice is to Liberians. Rice is Liberia’s staple food and we cannot sit as legislators and allow this looming increment to take effect without detailed and factual information provided to us,” he added.
Mr. Modad said the latest decision to increase the price of a specific quality of imported rice is due to complaint by importers of an increase in export tariff placed on rice by the Indian Government. India is the world’s largest exporter of rice.
However, the lawmakers are not convinced. Rep. Joe, in his communication stated that the Indian Government imposed this increment since August 2023 during the regime of former President George M. Weah.
“The question here is, how did the former President manage to keep stable the price of rice on our market,” he asked rhetorically.
A moment in history
Rice is Liberia’s staple food, and the country’s contemporary history has been completely shaped by rice. In April 1979, a proposal to raise the price of rice met with violent opposition. The government claimed that the price increase was meant to promote more local farming, slow the rate of urban migration, and reduce dependence on imported rice. However, opposition leaders including Gabriel Baccus Matthew of the pressure group, the Progressive Alliance of Liberia (PAL) pointed out that the Tolbert family controlled the rice monopoly in Liberia and therefore stood to benefit from the increment. What followed was a deadly rice riot on April 14, 1979, resulting to the loss of lives and looting of properties worth millions of dollars. The “rice riot” severely damaged Tolbert’s credibility and increased the administration’s vulnerability. In April 1980, Army Master Sergeant Samuel Doe, led a coup d’etat that resulted in Tolbert’s murder and the public execution of 13 of his cabinet members. Among the many Liberians that fled the country was then–Minister of Finance, Ellen Johnson-Sirleaf. Political commentators believe the rice riot, the 1980 coup d’etat and Doe’s repressive regimes- first under the military government and then following the 1985 election, in which he was accused of rigging, led to the civil war in late 1989 that lasted for 14 years. The war saw some of the worst atrocities in human history- 250,000 people died and millions more were displaced.
Since that 1979 fateful episode, successive governments have favored imports over locally produced rice. Past administrations have allotted millions of dollars in subsidies for rice importation. Currently an executive order which dropped all tariffs on rice importation is still in place.
Rep. Joe, like his colleague, in his communication did not shy away from invoking the past event and its consequences. “Distinguished Colleagues, I need not remind you of the rice riot on April 14, 1979, a day that came to be known as the “Evil Saturday” in Liberian history,” he said.
Lawmaker express mixed reaction
Before the vote to invite the two cabinet ministers was taken, Deputy Speaker Thomas Fallah, serving as presiding officer, allowed every lawmaker in session to participate in the floor debate. This garnered mixed opinions from them.
Rep. Jacob C. Debee (District #3, Grand Gedeh) said the Minister of Commerce, prior to the announcement of the increment, said there were enough rice on the market that could last up to the end of June this year. If his assertions were true, Debee said the rice should be absorbed before the increment takes effect on the newly imported ones.
Rep. Austin Blidi Taylor (District #3, Maryland County) questioned the rationale behind the increment. Rep. Taylor said the Weah government took pragmatic steps by exempting taxes on rice import in addressing the Indian Government 20% export tax increment, and since then, there has been no new increment.
Rep. Emmanuel Dahn (District #7, Montserrado County), noted that the rice issue should not politicized. He cautioned his colleagues to work with the Executive in finding an amicable solution to the problem. “The rice issue is not ordinary discussion. Let us take away those political sentimental statements. This should not be CDC against UP and UP against CD. The previous government slipped on that (finding sustainable solutions), the current government has slipped on that.”
Rep. Foday Fahnbulleh (District #7, Bong County) also cautioned against politicizing the rice issue. He suggested that the Government of Liberia through the Ministry of Foreign Affairs explore ways through diplomatic channels to engage its Indian counterpart to reach some agreements aimed at reducing the tariff on rice exported from India to Liberia.
Executive Mansion intervenes
Meanwhile, the Executive Mansion, late Tuesday, announced on its Facebook page that following a meeting with rice importers in Monrovia, “President Boakai says there will be no increment in the price of rice.” The notice did not give any detail about the meeting.