Restore waivers on import duties on agro-inputs, farm machinery — PFAG
The Peasant Farmers Association of Ghana (PFAG) wants the government to restore tax waivers that enabled them to import at cheaper rates and subsequently tamed the country's inflation.
The association says the waivers that ended in 2023 resulted in increased food prices and other agricultural products.
“In 2022, if you are bringing any agriculture item, equipment or commodities such as seeds, fertiliser, harvesters and tractors, it was with no import duty. However, in 2023 the government took away those waivers, which led to an increase in the import of these items and equipment, with an adverse increment on their sale in the country.
This had a snowball effect which increased the cost of production for the farmer and made it difficult for the farmer to sell at a cheaper cost,” Dr Charles Nyaba, president of the Peasant Farmers Association of Ghana (PFAG) told the Graphic Business in an interview in Accra.
He said most farmers are not able to acquire these machinery and items and this has decreased the volume of production, affecting the buffer stock and increasing the prices of food in the market.
“When you take a tractor, for instance, in 2022, it costs a farmer about GH¢250,000. However, when they reinstated the duties, we now purchase it between GH¢600,000 and GH¢700,000, with fertiliser, 50kg, costing GH¢180.
After the waivers were reinstated, it now costs between GH¢500 and GH¢600. So when the price of these goes up, we must pass on the price to consumers,” he stated.
Farmers service centres
He charged the new government to make good on its promise to establish the Farmers Service Centres that will make it easier for farmers to access machinery, equipment and items to aid in their farming.
He also tasked the government with tackling irrigation and helping construct the Pwalugu Multipurpose Dam to address the issue of irrigation in all three regions.
“The President must remove obstacles that led to poor production and poor supply of food in 2024; he must prioritise agriculture as the number one area of investment and avenue for national development,” he stated.
Appointment
The association called on the president to appoint a young person to serve as a Minister for Agriculture to attract the youth to the sector.
Dr Nyaba noted that the days when the elderly were appointed to positions are gone. These people are usually out of touch with the youth and fail to attract them to the sector.
“One most important issue of our association is the appointment of a youngster to the position of an Agriculture Minister to lure the youth to the profession because many of these old men and women who are appointed don’t gel well enough with the youth and makes it very hard to attract young people into the sector,” he stated.
President’s focus on agriculture
In his inaugural speech, President Mahama said his new economic model would be anchored in agriculture and agribusiness and would provide jobs for young people, stimulate local industry and attract foreign investment.
President Mahama also highlighted the critical role of agriculture and infrastructure in his vision for economic transformation.
The potential of agribusiness to create jobs and boost exports is significant, and targeted infrastructure investments could have a ripple effect across multiple sectors.