The Oil Palm Development Association of Ghana (OPDAG) has sounded the alarm over rising smuggling of edible oil into the domestic market, warning that the influx is undercutting local producers and threatening the sustainability of the sector.
OPDAG President Paul Kwame Aminu explained that smugglers exploit tax loopholes to supply cheaper, untaxed oil, putting Ghanaian brands at a severe disadvantage.
“There is an urgent need for a traceability system using blockchain technology to monitor the source and movement of oil supplies, especially those destined for the school feeding programme,” he said.
Mr. Aminu noted that OPDAG already has a traceability system that could be extended to suppliers and appealed to the National Food and Buffer Stock Company (NAFCO) to share supplier information to jointly prevent smuggling and ensure quality.
The association has also called on all oil suppliers to register with OPDAG to guarantee that only certified, FDA-approved products are distributed nationwide.
“We want to ensure that all oil supplied to schools meets the highest quality and safety standards,” he added.
OPDAG data indicate that roughly 6,000 tonnes of edible oil are smuggled into Ghana every month, sold at abnormally low prices, and severely undercutting local brands.
The association estimates the country loses nearly US$3 million monthly due to illicit imports, arising from under-declaration, mis-invoicing, smuggling, diversion of goods, and corruption at entry points.
Describing the situation as “deeply disturbing” and “anti-Ghanaian,” OPDAG warned that persistent smuggling could drastically reduce the annual contributions local producers make to the state.
The association stressed that Ghana’s oil palm industry has the capacity to meet domestic demand. Existing crude palm oil refineries can process about 615,000 tonnes annually, against a national demand of roughly 300,000 tonnes per year.
“Local manufacturers can supply the domestic market and even export to ECOWAS countries, boosting foreign exchange earnings,” OPDAG said.
Under government policy, Ghana aims to achieve self-sufficiency in palm oil production by 2032, as outlined in the new National Policy on Integrated Oil Palm Development announced in the 2026 Budget.
The plan targets development of over 100,000 hectares of new oil palm plantations and the creation of around 250,000 direct and indirect jobs, supported by an estimated US$500 million sector investment.
To address the smuggling challenge, OPDAG said it is working closely with NAFCO to curb illicit imports while promoting increased domestic production of vegetable and palm oil.
