Domestic food price inflation remains high around the world. Information between July and October 2022 shows high inflation in almost all low-income and middle-income countries; 83.3% of low-income countries, 90.7% of lower-middle-income countries, and 95% of upper-middle-income countries have seen inflation levels above 5%, with many experiencing double-digit inflation. The share of high-income countries with high food price inflation has risen to 86.8%.
With the price of food skyrocketing worldwide owing to the huge cost of energy in the production of the commodities, which is due largely to the on-going war between Russia and Ukraine, Liberia, being a part of the global economic community, has also fallen prey.
According to Hot Pepper’s investigation into the hike of Liberia’s staple, rice, from US$13.50 (thirteen dollars and fifty cents) to US$ 17.50 (seventeen dollars and fifty cents), with US$4.00 (four dollars) increment, the Government of Liberia (GOL) has withdrawn its yearly subsidy from trying to stabilize the cost of one 25kilo bag of rice, allowing for the market forces to stabilize the price of rice. Accordingly, the Republic was subsidizing the price of rice to the tone of US$12 million per year.
The investigation further revealed that, with the scarcity of rice on the world market and the domino effect of the hike in the cost of rice on the global market, if Liberian government continued to interfere in the stabilization of rice it would cost the Republic between US$60 to US$80 million annually to keep the cost of the commodity at a low price which, arguably, the Republic cannot afford.
The Ministry of Commerce and Industry on Friday, December 2, 2022 announced a new price for a 25kg bag of rice, increasing the amount from US$13 to US$17 at a wholesale price and from US$13.5 to US$17.5 at retail.
According to the Commerce Ministry’s press release, as a result of current global challenges faced with sourcing the commodity, President George M. Weah constituted a Rice Stabilization Taskforce, with the mandate to assess sustainability of current interventions, explore all options and propose new measures necessary to keep rice affordable and available on the Liberian market.
“Following extensive consultations with all relevant stakeholders, including major rice importers and the Liberia Marketing Association (LMA), coupled with recommendations from the Rice Stabilization Taskforce, a decision was reached to adjust the price of rice in order to increase the importation volume, increase availability of the commodity on the market, eliminate unauthorized price hikes and deter black market sales,” the release stated.
The release underscored that, effective December 3, 2022 the wholesale price for a 25kg bag of rice is US$17 or its Liberian dollar equivalent, and the retail price is US$17.5 or its equivalent in Liberian dollars.
The Ministry of Commerce emphasized that, through its inspectorate division, it will ensure straight compliance with the decision, and called on the public to report anyone found selling above the government-regulated price.
