ANRAG Rejects Monopoly and Pricing Claims as Raw Rubber Exports Raise Foreign Exchange Compliance Issues

Introduction

The natural rubber sector in Ghana is currently at a crossroads regarding export regulations, pricing structures, and value addition. The Association of Natural Rubber Actors of Ghana (ANRAG) has recently issued a strong rebuttal against allegations made by rival groups, specifically the Rubber Farmers Association of Ghana (RUFAG) and the Western Rubber Farmers Association (WRUFA). These groups had previously questioned ANRAG’s legitimacy and the impact of export restrictions. However, ANRAG maintains that the data supports a different narrative—one where foreign exchange compliance and value addition are paramount for the industry’s sustainability. This article provides a comprehensive analysis of ANRAG’s position, the economic implications of raw rubber exports, and the regulatory framework governing Ghana’s rubber landscape.

Key Points

Background

To understand the current dispute, it is essential to contextualize the rubber value chain in Ghana. The sector is governed by the Tree Crops Development Authority (TCDA), established under Act 1010. The TCDA is responsible for regulating the development, processing, and marketing of tree crops, including natural rubber.

ANRAG serves as an umbrella body representing farmers, processors, investors, aggregators, and nursery operators. It was officially registered under the Companies Act, 2019 (Act 992), and inaugurated by the TCDA on August 15, 2024. Its mandate focuses on promoting sustainable technologies, value addition, and orderly trade.

Recent tensions arose when sections of the financial backing and other associations alleged that ANRAG was illegitimate and that export restrictions on uncooked (raw) rubber were harming farmer welfare. These allegations suggested that exports were necessary to secure competitive prices for farmers. However, ANRAG argues that these claims are unsupported by evidence and that the focus should be on compliance and local industrialization.

Analysis

Rebutting Monopoly and Pricing Allegations

One of the central claims against ANRAG was that it operates as a monopoly or influences prices unfairly. ANRAG firmly rejects this characterization. The association points to the market structure in Ghana, which currently hosts seven authorized rubber processing factories alongside numerous authorized investors and aggregators. This competition, ANRAG argues, makes a monopoly impossible.

Regarding pricing, ANRAG presented data for 2025 indicating that the statutory minimum producer price set by the TCDA averaged GH¢8.52 per kilogram. Crucially, prices paid by local processors and aggregators consistently exceeded this floor. ANRAG characterizes this minimum price not as a ceiling that limits farmer earnings, but as a protective floor. Consequently, they argue that the claim that farmers rely on raw exports to get fair prices is contradicted by domestic market data.

Foreign Exchange Compliance and Valuation Gaps

The most critical issue raised by ANRAG concerns foreign exchange compliance and the economic loss associated with exporting raw materials. Based on export data from January to September and December 2025, approximately 39,000 metric tonnes of raw rubber were exported under 195 declarations.

The declared Free on Board (FOB) value for these exports was roughly US$4.48 million. However, when benchmarked against TCDA’s minimum purchase reference prices, ANRAG estimates the indicative value should be around US$26.03 million. This suggests a potential valuation gap of US$21.55 million.

This discrepancy raises serious questions about export valuation practices. If raw rubber is undervalued during export, it reduces the amount of foreign exchange repatriated through official banking channels. This not only affects the country’s balance of payments but also incentivizes the export of raw materials over processed goods.

The Opportunity Cost of Value Addition

ANRAG’s analysis extends to the lost potential of local processing. The association estimated that if the 39,000 metric tonnes had been processed domestically into Technically Specified Rubber (TSR)—the standard form used in international markets—Ghana could have generated approximately US$75.79 million in export returns.

Comparing the declared US$4.48 million from raw exports against the potential US$75.79 million from processed exports highlights a foregone value-addition and foreign exchange gain of roughly US$71.17 million. This underscores the economic imperative for Ghana to prioritize local processing capabilities.

Regulatory Compliance and the TCDA Framework

Under the Tree Crops Development Authority Regulations, 2023 (L.I. 2471), specifically Regulation 50, the TCDA is mandated to determine the percentage of produce reserved for local processors before export. This is done in consultation with the relevant value-chain committee.

ANRAG has raised concerns that there is no record of such consultation occurring prior to the issuance of export permits for the raw rubber. This procedural gap, if true, suggests a deviation from the regulatory framework designed to protect local industry. The association emphasizes that adherence to these laws is essential for sustainable development.

Risks to Credit Financing and Farmer Sustainability

Beyond immediate pricing and valuation, ANRAG warns that the continuous export of raw rubber threatens long-term credit financing structures. The rubber sector relies on complex tripartite financing arrangements involving:

• Farmer groups
• Technical operators (e.g., GREL, Rubber Processing Ghana Limited)
• Financial institutions (e.g., Agricultural Development Bank – ADB, National Investment Bank – NIB)

Between 1995 and 2016, these facilities supported over 9,200 farmers and financed more than 32,000 hectares of plantations, with a total credit exposure of approximately €61.8 million.

When raw rubber is diverted to export rather than to local processors, the cash flow required to service these loans is disrupted. This increases repayment risks for banks and threatens the viability of outgrower schemes that are crucial for smallholder farmers.

Practical Advice

For stakeholders in the natural rubber industry—including farmers, processors, and policymakers—navigating this landscape requires a focus on compliance and strategic planning.

For Farmers

• Understand Price Floors: Familiarize yourself with the statutory minimum prices set by the TCDA. This ensures you can verify that aggregators and processors are paying fair rates.
• Engage with Licensed Processors: Since local processors often pay prices comparable to or higher than export aggregators, prioritizing sales to domestic factories supports the local economy and reduces transportation risks.
• Document Transactions: Maintain clear records of sales and weights to contribute to accurate market data, which helps associations like ANRAG advocate effectively.

For Processors and Investors

• Invest in Capacity: With a clear valuation gap identified, there is a strong business case for expanding local processing capacity to capture the estimated US$71 million in foregone value.
• Ensure Export Compliance: Adhere strictly to TCDA regulations regarding export valuation to avoid legal repercussions and to support the repatriation of foreign exchange.

For Policymakers

• Strengthen Monitoring: Implement rigorous oversight on export declarations to close the valuation gap and ensure compliance with L.I. 2471.
• Facilitate Consultation: Ensure that the Rubber Value Chain Committee is actively consulted before issuing export permits, as required by law.

FAQ

Conclusion

The debate surrounding raw rubber exports in Ghana is not merely a matter of pricing but a complex issue involving foreign exchange compliance, regulatory adherence, and industrial strategy. ANRAG’s rejection of monopoly and pricing claims is supported by data indicating competitive local prices and a structured market. More importantly, the association highlights a critical economic opportunity: by processing rubber domestically, Ghana stands to gain over US$70 million in additional value. As the TCDA continues to regulate the sector, ensuring compliance with L.I. 2471 and prioritizing local value addition will be essential for the long-term sustainability of Ghana’s rubber industry and the broader economy.

Sources

• Life Pulse Daily / MyJoyOnline: “ANRAG rejects monopoly, pricing claims as uncooked rubber exports carry foreign exchange compliance issues” (Published: 2026-01-20).
• Tree Crops Development Authority (TCDA): Regulations, 2023 (L.I. 2471), specifically Regulation 50.
• Companies Act, 2019 (Act 992): Legal framework for the registration of ANRAG.
• Tree Crops Development Authority Act, 2020 (Act 1010): Establishing the regulatory authority.