Accra, Ghana – The Chamber of Agribusiness Ghana (CAG) today declared a national agricultural emergency following the alarming revelation that over 1.2 million metric tonnes of rice, maize, and soya beans remain stranded across Ghana’s agricultural heartlands.
This paradoxical crisis of surplus amidst production deficits demands immediate, decisive government intervention to prevent the collapse of our domestic grains sector, according to a press release issued and signed by the Chief Executive Officer of Chamber of Agribusiness Ghana (CAG), Farmer Anthony Kofituo Morrison.
THE CURRENT MARKET CRISIS – PARADOX SURPLUS AMIDST DEFICIT
It stated: “Data from our field operations confirms a devastating reality: while Ghana faces significant production shortfalls in key commodities, local harvests remain unsold due to critical market distortions and policy inconsistencies”.
Rice Sector Crisis
Ghana’s annual rice consumption is estimated at 1.9 million metric tonnes, with local production at approximately 900,000 metric tonnes.
Despite a theoretical deficit requiring imports, field data confirm, almost two years’ worth of both milled and paddy rice remain unsold in warehouses and factories.
Compounding this crisis are credible reports of smuggling and inflows of expired rice through unapproved routes, resulting in significant tax losses and further market distortion, the press release stated.
Maize and Soya Bean Dynamics: For maize, Ghana’s annual consumption of 3.3 million metric tonnes exceeds local production of 2.5 million metric tonnes, creating a 700,000 metric tonnes shortfall. Meanwhile, soya bean production of 225,000–250,000 metric tonnes represents only 26%–36% of Ghana’s potential capacity of 700,000 metric tonnes, yet domestic demand exceeds 300,000 metric tonnes and continues growing.
POLICY INCONSISTENCIES AND UNINTENDED CONSEQUENCES
The Export and Import (Restriction on Exportation of Soya Beans) Regulations, 2020 (L.I. 2432) has created severe market distortions despite its intention to ensure adequate local supply for poultry and aquaculture and industries:
Price Collapse: Farm gate prices have plummeted from GH¢650 to GH¢400 per bag.
- Warehouse Gridlock: Thousands of bags remain locked up in warehouses across the Northern regions and the Southern parts of the country.
- Production Disincentives: Farmers are increasingly shifting to other crops due to market constraints.
IMMEDIATE MEASURES TO RESOLVE THE CRISIS
To address this emergency, the Chamber of Agribusiness Ghana demands the following immediate actions:
- Implement a 3-Month Moratorium on Rice Imports
“We urgently call for an immediate three-month ban on rice importation to clear existing local stockpiles, provide relief to farmers and millers, and enable essential market recalibration”, the CAG demanded.
- Remove Export Restrictions on Soya Beans (L.I. 2432)
We demand immediate repeal of L.I. 2432 to restore market prices, eliminate warehouse gridlock, encourage increased cultivation, and help Ghana realise its production potential of 700,000 MT annually.
- Implement Comprehensive Audit and Quota System
“We strongly recommend that the Ministry of Trade Agribusiness and Industry, the National Security, Ghana Revenue Authority, Ghana Standards Authority and the Food and Drugs Authority immediately conduct an extensive audit of all rice on the market to validate tax compliance, check quality standards, and eradicate smuggled products”.
STRATEGIC STATE INTERVENTION
Beyond immediate measures, we propose that the government establish a Strategic Grain Reserve Procurement Programme to
- Immediate Market Relief: Deploy state funds through the National Food Buffer Stock Company (NAFCO) to purchase surplus grains directly from farmers at sustainable prices;
- Price Stabilisation Mechanism: Create a national grain price stabilisation fund to ensure predictable pricing for both farmers and grain-based industries;
- ECOWAS Commitment Fulfilment: Utilise purchased grains to redeem Ghana’s commitments to regional food security initiatives, including the ECOWAS Regional Food Security Storage Strategy.
- Industrial Input Security: Ensure a stable, affordable grain supply to poultry, livestock, and food processing industries to boost domestic manufacturing
FRAMEWORK FOR LONG-TERM SECTOR GROWTH
The Chamber also proposed a comprehensive framework for sectoral growth· 5-Year Ghana Rice Production Strategy: Led by the Ministry of Food and Agriculture and Ministry of Trade and Industry, featuring a phased import quota system aligned with increasing local production capacity;
- Quality and Infrastructure Enhancement: Research initiatives to improve local rice varieties matching consumer preferences, plus targeted investments in irrigation, mechanisation, and processing capacity
- Private Sector Agro-Processing Development: Support the establishment of more Agro-processing industries to increase local processing capacity
- Long-Term Agriculture Development Policy: A comprehensive Agriculture for Economic Transformation policy to spur investment and coordinate government support.
CONCLUSION
“We must safeguard the investments of our local farmers and agribusinesses to build a food-secure and economically resilient Ghana. CAG believes decisive action on these recommendations will not only resolve the current grain glut but also reposition Ghana’s grains sector as a driver of sustainable growth and national resilience”.
