AGI urges FDA to extend deadline on alcohol policy amid industry losses

The Association of Ghana Industries (AGI) has called on the Food and Drugs Authority (FDA) to grant manufacturers additional time to clear existing stock following the directive banning production and sale of alcoholic beverages in sachets and small volumes.

According to AGI president Dr. Kofi Nsiah-Poku, while industry players broadly support the policy objective, the transition period provided is inadequate and risks imposing significant financial losses on manufacturers.

“Manufacturers currently have stock and they feel the time allocated is insufficient to exhaust both their raw materials and finished products already on the market,” he said. “They are not opposed to the ban itself; their concern is simply the need for additional time.”

He spoke at an AGI policy dialogue, themed ‘Strengthening public-private dialogue in policy formulation’. It brought together various stakeholders including manufacturers, regulatory agencies, the FDA and Ghana Revenue Authority among others.

The FDA directive, which affects alcoholic products packaged in sachets and containers below 300 millilitres, forms part of efforts to curb alcohol abuse – particularly among young people.

The directive took effect at the beginning of March 2026 and was deemed necessary by the Food and Drugs Authority (FDA) following reports of widespread smuggling of alcoholic beverages packaged in sachets by students in basic and senior high schools during lesson hours.

However, AGI argues that the abrupt implementation has created operational and financial strain across the sector.

Dr. Nsiah-Poku disclosed that some companies are holding substantial unsold inventory, with one firm alone reportedly sitting on as many as 17 million units.

“The financial losses across manufacturers will be substantial if this is not addressed,” he noted.

The AGI is therefore pushing for a revised transition framework, proposing up to 12 months -or at the very least an extension to the end of the year – to allow for an orderly phase-out of affected products.

“We have already initiated discussions with the FDA and hope they will agree to grant an extension. We are not requesting anything difficult – just more time,” he added.

Industry leaders maintain that production cycles, procurement of raw materials and distribution timelines typically span well beyond six months, making the current deadline impractical.

Many firms, they argue, plan production up to 18 months in advance – meaning the directive disrupts existing supply chains and capital investments.

Beyond the immediate financial implications, AGI emphasised that insufficient transition time could lead to broader economic consequences including job losses and stranded industrial assets, particularly for companies with specialised machinery dedicated to sachet production.

AGI Chief Executive Officer Seth Twum-Akwaboah underscored the need for structured engagement between regulators and industry, warning that policy shifts without adequate notice undermine business planning.

“The core issue is not necessarily the policy itself, but the lack of timely engagement. If regulators and industry operate as partners, early communication allows businesses to plan and adapt… thereby minimising losses,” he explained.

He added that while safeguarding public health remains paramount, enforcement of existing regulations – such as age restrictions on alcohol sales – must be strengthened alongside new policy measures.

“We support the objective of addressing alcohol abuse. However, regulatory changes must allow businesses sufficient time to adjust. A rushed transition only creates avoidable disruption,” he said.

The AGI is also advocating a collaborative approach, urging the FDA to work with manufacturers to assess stock levels and agree on a realistic timeline for compliance.

“Let us look at the stock available and determine a practical period for it to be cleared. That is the most effective way to implement this policy without causing unnecessary losses,” Dr. Nsiah-Poku stressed.

The call comes amid broader discussions on strengthening public-private dialogue in policy formulation, with stakeholders highlighting the importance of evidence-based decision-making, transparency and early consultation.

For AGI, the outcome of ongoing engagements with the FDA will be critical in determining whether the policy achieves its public health objectives without undermining industrial stability.

“What we are calling for is structured dialogue, adequate notice and a transition framework that enables industry to comply without undue disruption,” Mr. Twum-Akwaboah said.

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