Minority members on Parliament’s Trade and Industry Committee have raised concerns over an acute shortage of raw rubber for local manufacturing companies, warning that the situation is leading to job losses and reduced industrial output.
The caucus says several rubber processing companies have been forced to lay off hundreds of workers, scale down production or shut down operations entirely due to the unavailability of raw rubber.
Speaking to journalists, the Ranking Member on the committee, Michael Okyere Baafi, accused the Tree Crop Development Authority (TCDA) of prioritising exporters of raw rubber at the expense of domestic processors.
He said Ghana has only about five or six major rubber processing companies, including Ghana Rubber Estates and Narubiz, which are struggling to secure raw materials despite having the capacity and machinery to produce.
According to him, some local processors have lost international contracts due to inconsistent supply.
He cited Ghana Rubber Estates, which he said now supplies only Michelin after contracts with other companies, including a major Thai manufacturer, were reduced or cancelled.
Okyere Baafi alleged that the TCDA is allowing individuals to buy raw rubber directly from farm gates for export, depriving local factories of the raw materials they need to operate.
“As it stands now, most processors have reduced the number of staff they employ. Ghana Rubber Estates alone used to employ over 4,600 workers, but that number has dropped to about 3,000,” he said.
He noted that although the factories have the capacity to employ close to 20,000 workers nationwide, current employment figures are below 6,000 because of raw material shortages.
The ranking member warned that the situation will negatively affect government revenue, as reduced production will lead to lower tax payments.
He called on the Ministers of Finance, Agriculture and Trade and Industry to intervene and direct the leadership of the Tree Crop Development Authority to prioritise support for local industries.
Okyere Baafi argued that encouraging untraceable raw rubber exports undermines domestic investment and job creation, stressing that policies should favour companies that have established factories in Ghana and are committed to employing Ghanaians.
The Minority is urging the Tree Crop Development Authority to take immediate steps to ensure local processors have access to raw rubber to protect jobs and sustain the country’s rubber industry.
Source: www.kumasimail.com
