About 2,000 rubber farmers protest in Sekondi-Tarkoradi over calls to prohibit uncooked rubber exports – Life Pulse Daily

Introduction

In January 2026, the streets of Sekondi-Tarkoradi echoed with the voices of approximately 2,000 rubber farmers and aggregators from Ghana’s Western Region. Their peaceful march, marked by pink and black attire and slogans like “Farmers Say No to Monopoly” and “No Instant Payment, No Ban,” was a direct response to growing calls from certain processing firms to prohibit the export of uncooked rubber. This demonstration, more than a mere labor grievance, represents a critical juncture in Ghana’s broader economic discourse about value addition, industrialization, and the rights of smallholder farmers.

The protest, organized by the Rubber Farmers of Ghana (RUFAG) and allied stakeholders, was a clarion call against what they perceive as a self-serving agenda to monopolize the rubber market. The farmers argue that such a ban would not only devastate their livelihoods but also fail to achieve the stated goal of industrialization. This article delves into the core arguments, the regulatory framework, the historical context, and the potential consequences of this policy debate, offering a comprehensive analysis for policymakers, industry stakeholders, and the general public.

Key Points

The Protest: Who, Why, and What

The demonstration involved around 2,000 participants, primarily smallholder rubber farmers and aggregators from the Western Region. They presented a petition to the Western Regional Minister, Joseph Nelson, outlining their grievances. Their core objection is to a proposed total ban on the export of uncooked rubber, which they believe would eliminate competition, drive down farm-gate prices, and ultimately harm the rural economy that depends on rubber cultivation.

The Regulatory Framework: Exports Are Not Unchecked

Contrary to claims that raw rubber exports are unregulated, the farmers assert that a robust regulatory system exists. They cite the Tree Crops Development Authority (TCDA) Directive of May 2, 2025, which mandates registration, licensing, and permits for all exporters of unprocessed rubber, cashew, and shea. This directive is enforced in collaboration with the Ghana Revenue Authority’s Customs Division, the Ghana Ports and Harbours Authority, and other security agencies. The farmers emphasize that this system operates under the legal framework of Act 1010 and L.I. 2471.

The Monopoly Argument: Processors vs. Farmers

RUFAG accuses certain processing companies and their allies of using the industrialization narrative as a guise for eliminating competition. They argue that local processors currently convert raw rubber into Technically Specified Rubber (TSR), which is still a primary commodity for export. The farmers contend that a ban would force them to sell at lower prices to a limited number of processors, effectively creating a monopsony (a market with only one buyer). This, they warn, would deepen rural poverty and potentially push more youth into illegal mining (galamsey).

Economic Impact: Livelihoods vs. Alleged Revenue Loss

The farmers dispute the claim that Ghana loses up to US$100 million annually due to raw rubber exports. They point out that exporters pay statutory levies to the TCDA, while some processors allegedly do not fully comply with these same levies. Furthermore, they highlight that the rubber value chain supports over two million dependents, including tappers, transporters, farm maintenance workers, and shipping operators. In contrast, local processing factories employ fewer than 1,000 people nationwide.

Historical Precedent: Lessons from COVID-19

The farmers recall the COVID-19 pandemic, during which several processors suspended purchases, leaving farmers stranded. Exporters, however, provided alternative markets that helped sustain livelihoods. This experience, they argue, underscores the importance of multiple markets for farmers’ economic security and resilience.

Legal Clarification: No Illegality in Exports

The farmers firmly reject allegations that raw rubber exports violate Act 1010 or L.I. 2471. They maintain that these laws empower the TCDA to regulate exports through a licensing system, not to prohibit them. They warn that baseless allegations of illegality could undermine investor confidence and erode trust in regulatory institutions.

Stakeholder Representation: Disassociation from ANRAG

In their petition, the farmers officially dissociated themselves from the Association of Natural Rubber Actors of Ghana (ANRAG), describing it as a processor-driven group that does not represent the broader rubber value chain. They urge the government to engage with all legitimate stakeholders before making policy decisions that affect the industry.

Background

Ghana’s Rubber Industry: A Historical Overview

Ghana has a long history with rubber cultivation, dating back to the colonial era. The country’s tropical climate and fertile soils, particularly in the Western Region, make it suitable for rubber tree cultivation. Smallholder farmers have been the backbone of the industry, often managing small plots of land. Over the years, the government has promoted the establishment of processing factories with the aim of adding value to the raw product and retaining more revenue within the country.

The Role of the Tree Crops Development Authority (TCDA)

The TCDA, established under Act 1010 and L.I. 2471, is the primary regulatory body responsible for the development and regulation of tree crops in Ghana, including rubber, cocoa, cashew, and shea. Its mandate includes setting standards, issuing licenses, collecting levies, and promoting the sustainable development of these crops. The TCDA’s role is central to the current debate, as it is the agency that regulates both exports and domestic processing.

The Value Addition Narrative in Ghana

The Ghanaian government, like many developing nations, has long championed the policy of value addition. The rationale is that by processing raw materials domestically, the country can capture more of the value chain, create jobs, and foster industrialization. This narrative has been applied to various sectors, including cocoa, cashew, and rubber. However, the implementation of this policy has often been fraught with challenges, including inadequate infrastructure, limited access to capital, and, in some cases, resistance from established interests.

The COVID-19 Pandemic: A Catalyst for Re-evaluation

The COVID-19 pandemic exposed vulnerabilities in global supply chains and highlighted the importance of market diversification. For Ghana’s rubber farmers, the pandemic was a stark reminder of the risks associated with over-reliance on a single market or buyer. When processors suspended operations, exporters provided a crucial lifeline. This experience has shaped the farmers’ perspective on the need for multiple market channels.

Analysis

Economic Implications of an Export Ban

An export ban on raw rubber would have significant economic implications. On one hand, it could potentially increase the supply of raw material for domestic processors, possibly lowering their input costs and making them more competitive. On the other hand, it would eliminate a critical source of income for farmers, who would be forced to sell to a limited number of processors. This could lead to a decrease in farm-gate prices, reducing farmers’ incomes and potentially discouraging investment in rubber cultivation.

The Monopsony Problem

The concentration of processing capacity in a few hands creates a monopsony, a market structure where there is only one buyer for a particular good or service. In such a scenario, the buyer (the processor) has significant power to set prices, often to the detriment of the seller (the farmer). The farmers’ fear of a monopsony is not unfounded, as it could lead to exploitative pricing and reduced bargaining power for smallholder farmers.

The Industrialization Debate: Reality vs. Rhetoric

The argument for an export ban is often framed in terms of industrialization. Proponents argue that by forcing all raw rubber to be processed domestically, Ghana can build a robust rubber processing industry. However, the farmers’ counter-argument is that the current level of processing in Ghana is limited to the production of TSR, which is still a primary commodity. They question whether the existing processing capacity is sufficient to handle the entire raw rubber output and whether the processors are truly committed to adding higher levels of value to the product.

The Social Impact: Rural Livelihoods and Youth Employment

The rubber value chain supports a vast network of livelihoods in rural Ghana. A ban on raw rubber exports could have a ripple effect, leading to job losses not only for farmers but also for those involved in transportation, loading, and other ancillary services. The farmers’ concern that such a policy could push more youth into illegal mining is a serious social issue that cannot be ignored. Illegal mining has been a major environmental and security challenge in Ghana, and any policy that exacerbates this problem should be carefully scrutinized.

The Legal and Regulatory Perspective

The farmers’ assertion that raw rubber exports are not illegal is supported by the existing legal framework. Act 1010 and L.I. 2471 provide for the regulation of tree crops, including the issuance of licenses for export. The TCDA Directive of May 2025 further clarifies the regulatory process. Any move to ban exports would require a change in the law, which would need to be debated and passed by Parliament. This legal dimension adds complexity to the issue and underscores the importance of following due process.

The Role of Stakeholder Representation

The farmers’ disassociation from ANRAG highlights a critical issue in policy formulation: whose voices are being heard? ANRAG, as a processor-driven association, may have interests that diverge from those of the farmers. For any policy to be effective and equitable, it is essential that all stakeholders, particularly those most affected, are included in the decision-making process. The farmers’ call for inclusive engagement is a legitimate demand for democratic participation in economic policy.

Practical Advice

For Policymakers

1. Conduct a Comprehensive Impact Assessment: Before implementing any policy changes, conduct a thorough economic and social impact assessment that considers the effects on all stakeholders, particularly smallholder farmers.
2. Promote Market Diversification: Instead of a blanket ban, explore policies that encourage both domestic processing and export, ensuring that farmers have multiple market options.
3. Strengthen Regulatory Enforcement: Ensure that the existing regulatory framework is effectively enforced, including the collection of levies from all actors in the value chain.
4. Inclusive Stakeholder Engagement: Establish a multi-stakeholder platform that includes farmers, processors, exporters, and government representatives to facilitate dialogue and consensus-building.
5. Invest in Value Addition Infrastructure: Provide incentives and support for the development of advanced rubber processing facilities that can produce higher-value products, thereby creating more jobs and retaining more value within the country.

For Farmers

1. Form Cooperatives: Strengthen farmer cooperatives to enhance collective bargaining power and improve access to markets and credit.
2. Diversify Crops: Consider crop diversification to reduce dependence on a single commodity and increase resilience to market fluctuations.
3. Engage in Advocacy: Continue to engage in peaceful advocacy and dialogue with policymakers to ensure that their voices are heard.
4. Adopt Best Practices: Invest in training and adopt best practices in rubber cultivation to improve yields and quality, making their produce more competitive in both domestic and international markets.

For Processors

1. Ensure Fair Pricing: Adopt transparent and fair pricing mechanisms that reflect the true value of the raw material and provide farmers with a reasonable return on their investment.
2. Invest in Advanced Processing: Move beyond the production of TSR to develop higher-value rubber products that can compete in international markets.
3. Support Farmer Development: Partner with farmers through outgrower schemes and provide technical support to improve productivity and sustainability.
4. Comply with Regulations: Ensure full compliance with all regulatory requirements, including the payment of levies and adherence to environmental standards.

FAQ

Conclusion

The protest by 2,000 rubber farmers in Sekondi-Tarkoradi is more than a local labor dispute; it is a microcosm of the larger challenges facing developing economies in their pursuit of industrialization and value addition. The farmers’ arguments are grounded in economic reality, historical experience, and a legitimate concern for their livelihoods. While the goal of industrialization is laudable, it must be pursued in a manner that is inclusive, equitable, and sustainable.

The regulatory framework for rubber exports in Ghana is robust, and the claims of unchecked exports are unfounded. The real issue lies in the balance of power between processors and farmers. A policy that eliminates competition and creates a monopsony is unlikely to benefit the majority of stakeholders, particularly the smallholder farmers who form the backbone of the industry.

For Ghana to achieve its industrialization goals, it must invest in advanced processing infrastructure, ensure fair pricing mechanisms, and promote market diversification. It must also ensure that all stakeholders, especially those most affected, are included in the policy-making process. The voices of the 2,000 farmers who marched in Sekondi-Tarkoradi must be heard, not just as a matter of social justice, but as a prerequisite for sustainable economic development.

Sources

• MyJoyOnline. “About 2,000 rubber farmers protest in Sekondi-Tarkoradi over calls to prohibit uncooked rubber exports.” Published January 9, 2026.
• Tree Crops Development Authority (TCDA) Directive, May 2, 2025.
• Act 1010 and L.I. 2471 (Legal Instruments related to Tree Crops Development Authority).
• Interviews and statements from the Rubber Farmers of Ghana (RUFAG) and the Western Regional Minister, Joseph Nelson.