OPDAG warns Palm Oil smuggling endangers local Farmers, industry
21st February 2026
The Oil Palm Development Association of Ghana (OPDAG) has raised concerns over the growing influx of smuggled vegetable oil into the country, warning that the illegal trade is severely impacting local producers and smallholder farmers.
Addressing journalists at the maiden Ghana Tree Crops Investment Summit and Exhibition (GTCIS-2026) held at the Accra International Conference Centre on February 20, 2026, OPDAG President Paul Amaning said farmers nationwide are losing millions of cedis annually as cheap imported palm oil continues to flood the market.
He explained that major processors such as Garbin Oil Mills, Benso Oil Palm Plantation and Ghana Oil Palm Development Company (GOPDC) are struggling to compete with smuggled products. As a result, they are compelled to reduce the prices they pay for fresh fruit bunches, placing additional strain on farmers.
According to Mr Amaning, processors have had to cut prices by as much as GH¢700 per tonne, a situation he said is costing the average farmer close to GH¢1 billion annually.
He noted that the price disparity stems largely from tax evasion by smugglers. While a 25-litre gallon of locally produced oil may retail at about GH¢580, smuggled oil can sell for as low as GH¢420, creating what he described as an uneven playing field for legitimate businesses.
OPDAG indicated that the practice has persisted for more than four years, despite government directives requiring all vegetable oil imports to enter the country through the Tema and Takoradi ports.
Mr Amaning alleged that trucks carrying thousands of gallons of vegetable oil continue to enter Ghana through unapproved land border routes, undermining regulatory oversight and weakening local industry.
He cautioned that beyond lost state revenue, the situation poses a serious threat to the survival of farmers and processors, warning that sustained price suppression could render local operations unsustainable.
The Association is therefore calling on regulatory bodies, including the Tree Crops Development Authority (TCDA) and the Food and Drugs Authority (FDA), to intensify market surveillance and ensure that only legally imported and properly registered vegetable oil products are sold in the country.
Mr Amaning proposed that the TCDA be empowered to certify all vegetable oil imports, while the FDA should be adequately resourced to remove unregistered products from the market.
He stressed that any vegetable oil not registered with the FDA should be treated as smuggled, insisting that stronger enforcement mechanisms are needed to protect farmers, processors and consumers alike.