MONROVIA — The Ministry of Commerce and Industry has rejected accusations made against its minister, Amin Modad, by Freedom FM’s manager Sekou Sheriff.
By Selma Lomax, [email protected]
In a Facebook post Wednesday, journalist Sheriff claimed that rice importers, during a meeting, refused to accept Minister Modad’s request for $0.25 USD on each bag of rice sold at the price of $17.00 USD, adding that said refusal eventually led to the increment to 17.00 USD to settle all sides: importers, Minister, and stakeholders.
However, the ministry in a release Thursday described Sheriff’s accusations as a “failed attempt” to discredit Minister Modad, and by “lying to himself just to perpetuate his unprincipled behavior and malicious intent.”
“The public can attest to the fact that it was through Minister Modad’s effort and negotiations with the rice importers that they rather reduced the price of rice from $17 to $16.75 in February,” the ministry said.
“Mr. Sheriff must understand that journalism is a calling not an opportunity to hustle; as a calling, it demands a sense of morality, professional skills, and professional aims.”
The ministry used Thursday’s press release to reassure the public that there is no shortage of rice and the price of the 25kg bag of 5% Broken Indian Parboiled Rice remains at $16.75 as instructed by President Joseph Boakai.
“There are other varieties of rice on the market, some sold lower than the $16.75,” the ministry added.
Minister Modad commenced work at the Ministry of Commerce on February 6, 2024, and was immediately brought up to speed on the existing challenges and previous dialogues with rice importers that had been initiated under the Weah-led government.
A communication dated October 3, 2023, in the possession of FrontPageAfrica, included a request to increase the price of the 5% Broken Indian Parboiled Rice (IR64) from $17 to $20 per bag. In their communication to the previous administration and to Minister Modad, rice importers highlighted several factors for their request, primarily that a 20% export duty was imposed by India on this rice variety, significantly impacting the cost structure for importers.
They also expressed additional concerns over escalating costs due to increased shipping and insurance rates, fueled by geopolitical tensions in Ukraine and the Middle East. They also highlighted several domestic issues contributing to their operational costs, including multiple and increased fees from APM Terminal and the National Port Authority (NPA) alongside bureaucratic delays that exacerbated their financial burdens.
The ministry, according to the release, immediately sought to understand the policies and regulations that were in place governing rice importation and to verify their concerns.
“We also sought to establish the stock of rice in country and verify that sufficient rice was being shipped to avoid shortage or scarcity. It is worth noting that the previous administration opted not to address their requests despite the implications; the requests were rather deferred to the incoming leadership,” the ministry added.
The ministry said in the context of prior poor engagement with the rice importers by the former administration, which contributed to a severe rice shortage and an inflation of rice prices to about $25 per bag in 2022.
It was reported that rice was sold for up to $35 per bag on the black market. In response to this crisis, a subsidy of $22 million was earmarked to support the importers, yet only $11 million was presumably disbursed, with outstanding claims from some of the importers who did not receive their share of subsidy disbursed.
However, the ministry said since Minister Modad’s appointment and subsequent confirmation by the Liberian Senate, he has made verifiable strides to address these issues and ensure that Liberia’s staple food—rice—is available and affordable.
Steps taken by the Minister
The ministry said before Modad took over, there were six major importers of rice on the market, all inherited from the last administration, and no Liberian was granted Import Permit Duties (IPDs) to bring in large volumes of rice during the previous administration.
However, the ministry added, within four months, Minister Modad has granted 3 permits out of the 5 new applications, all of which are Liberian enterprises.
In consideration of the global factors impacting rice prices and supply, Minister Modad, according to the ministry, prevailed on all importers to bring in other varieties of rice to provide cheaper alternatives and choices to the citizens.
“Minister Modad also negotiated with the importers to invest in the local production and supply of rice. They have agreed to provide $200,000.00 towards setting up a packaging facility to aggregate and package the domestically grown country rice from local farmers to be distributed by the imported along with the imported rice,” the ministry said.
The ministry said it is also in discussions with bilateral and other development partners to explore opportunities to source affordable rice, provide funding for Liberian entrepreneurs to enter into the rice importation space, and to create a Rice Buffer Stock to serve as an emergency reserve in case of any shocks that would impact supply and pricing.
The ministry added also it’s working with the Office of the President and other agencies to develop a holistic long-term strategy to address food security and self-sustainability with rice being a priority.
“The ministry is now developing more predictable administrative regulations for the importation and distribution of rice, considering the entire trade and production value chain from importation to how rice is retailed across the country,” the release added.
Minister Modad and his team have also rolled out the rebranded Inspectorate Division of the ministry with a mandate to ensure that vendors do not sell the 25kg Bag of 5% Broken Indian Parboiled Rice above the government-set price ceiling, the ministry said.
Minister Modad, the ministry added, has successfully managed many businesses over the years without any accusations, a testament to his good business deeds and innovative, sustainable business management strategies, which he intends to replicate at the Ministry of Commerce & Industry in the interests of the country and people.
“The minister understands that many hidden hands are angered by the reforms he is bringing about and his new policy direction of empowering Liberians to take hold of their own economy. This has unsettled old-age profiteers and people in the opposition, prompting them to launch a massive smear campaign against him.”
“Undeterred, Minister Modad assures the public that he is focused and firm on delivering the commerce, trade, and industrial development priorities of President Boakai’s agenda and will not be distracted by infantile propaganda coming from people like Sekou Sheriff and his ilk.
