The Cabinet has approved that an initial GH¢100 million should be released to purchase surplus food from farmers across the country, the Deputy Chief Executive of the National Food Buffer Stock Company (NAFCO), Osmend Amuah has said.
The funding, he said forms part of the government’s plan to mop-up excess produce, prevent post-harvest losses and build a national food reserve to enhance food security.
Speaking at a press conference in Accra on Thursday [October 30], Mr Amuah said with the funds, NAFCO has already procured 60,000 bags of rice, 120,000 bags of maize, and 10,000 bags of gari, targeting key staple foods for emergency reserves.
He said the initiative responds to farmers’ appeals for market access amid high yields and limited storage capacity.
"Farmers in the Afram Plains and the northern belt are complaining that there is no market space for them, there is no price, and because there is limited storage, some of them cannot store their produce. So, the potential to have high post-harvest losses was huge."
"So, this plea was channeled through the Minister for Agriculture and through his instrumentality, he engaged the cabinet and the cabinet approved an initial funding of GH¢100 million for NAFCO to go to the market and start the mop-up process," he said.
Additional funding
Mr Amuah mentioned that the Minister for Food and Agriculture, Mr Eric Opoku is also seeking Cabinet’s approval for an additional GH¢100 million to expand the mop-up exercise.
"I'm happy to announce this afternoon that the Minister for Agriculture has agreed that he would be discussing with Cabinet on an urgent need for additional release of funding of about GH¢100 million again on an incremental basis, so that we'll be able to mop up the additional surpluses that are on the market," he said.
“You will recall that the complaints have come from various parts of the country — the coastal and Volta belts, the Ashanti and middle belts, as well as the northern enclave.”
“All these zones have active farming communities, so the government’s intervention is designed to specifically target smallholder and household farmers, ensuring they directly benefit from the opportunity to sell their produce,” he said.
Pricing
He added that NAFCO has further set a floor price of GH¢5 per kilo for paddy rice to protect farmers from unfair pricing by aggregators.
The move, he said, demonstrates the government’s commitment to sustaining farmers’ livelihoods, stabilizing food supply and strengthening national food security systems.
“The previous arrangement covered prices for various grains, but none had been set for paddy rice. Currently, the major concern in areas such as Fumbisi and other parts of the northern belt is the large quantities of unsold rice,” he said.
“These farmers have appealed to the government to intervene and purchase the excess stock. In response, the Minister directed the Producer Price Determination Committee of NAFCO to convene and establish a fair price for paddy rice. Following extensive deliberations, the committee has recommended a price of GH¢5 per kilogram,” he announced.
National food reserve
He stressed that the government has introduced a National Food Reserve Programme to address challenges faced by farmers who have met production targets but lack buyers due to economic constraints and limited funding.
He also said the programme aims to store 10 per cent of Ghana’s annual staple food consumption (about 6.8 million tonnes) as a safeguard against emergencies or famine.
This initiative, according to him, is intended to reduce food insecurity and enhance national stability, ensuring that surplus produce is preserved and farmers’ efforts are not wasted.
"The National Food Reserve Programme is just simple logic. That at least in case of emergency, let's be able to put away 10 per cent of our annual consumption. So, we consume 6.8 million in staples."
"That simply means that we should be able to set aside 10 per cent of that in case of an emergency or a famine, so that we can address the concerns and the plight of our people. This will mitigate food insecurity and generally improve the security conditions in the country," he explained.
Background
Last month, farmers from various parts of the country appealed to the government for assistance in selling their produce, citing market challenges that have led to the spoilage of perishable goods.
Some of the farmers, through social media, called on the government to intervene by purchasing surplus produce through agencies such as NAFCO, expanding storage facilities, and establishing a price-setting committee to protect them from market fluctuations.
They also urged the introduction of a policy to regulate the pricing and measurement of agricultural products to ensure fair and stable incomes for farmers.
