Dr. Bryan Acheampong, the Minister of Food and Agriculture (MoFA), has reported a significant decrease in food prices in Ghana over the past few months.
He credited this reduction to the effective measures implemented by the government, yielding positive outcomes. While addressing journalists in Accra during the Agric Fair at the Ministry’s premises, Dr. Acheampong highlighted the decline in food product prices.
However, he acknowledged that in certain cases, consumers still face high costs due to opportunistic profiteering by middlemen.
“We have been able to bring the price of maize down by 50%, and it is not just the maize. With regard to a lot of the cereals, the prices are dropping. Maize that used to sell at the same time last year at GH¢300 for 50kg bag now is GH¢148, the maximum that you get is GH¢150 which means that there is a 50% drop in the price of maize.
“But nobody is talking about it because you don’t see it translate into the price of a ball of kenkey. It means that there’s someone in the middle who is pocketing the profit.”
Dr. Bryan Acheampong
In addition, emerging evidence indicated that inadequate competition might be contributing to unjust food prices for consumers in Ghana, with retail prices escalating more rapidly than wholesale prices. Essential food items like onions, gari, and sorghum have been identified as critical markets requiring attention, prompting calls for national authorities to investigate and take corrective action.
Both local and international experts caution that certain market participants are reaping unprecedented profits during this period of a food crisis, leading to consumers being overcharged and farmers being underpaid. A newly developed tool by consumer organizations has underscored the risk of inequitable food prices in Ghana, stemming from insufficient competition within both national and global food supply chains.
The Fair Food Price Monitor raises concerns about the possibility of escalating prices for Ghanaian consumers not only due to factors like heightened fuel costs and currency depreciation but also due to dominant market players exploiting the crisis to excessively raise prices.
This monitoring tool, a collaboration between Consumers International (representing global consumers) and the Consumer Advocacy Centre in Ghana (affiliated with Laweh University College), utilizes data from sources such as the UN World Food Programme (WFP) and UN Food and Agriculture Organization (FAO).
Its purpose is to trace the correlation between food prices at various stages of the supply chain in Ghana and to pinpoint areas where government intervention and action may be necessary.
Import Restriction To Cause Food Inflation
Meanwhile, government’s announcement of restricting the importation of some goods is feared to cause shortage and further escalate food prices, particularly as the festive season approaches. Moreover, many economists have projected that a sudden passing of the bill may make food inflation unbearable for the consumer.
Dr. Joseph Obeng, the President of the Ghana Union of Traders Association, emphasizes the necessity for the government to furnish comprehensive details and timelines regarding the implementation of the import restrictions bill presently under consideration in Parliament. Dr. Obeng underscores the importance of the government providing clear information to the Ghanaian public regarding the goals and intentions of the Legislative Instrument, enabling them to prepare adequately in advance.
“What we are expecting is that we have aims and objectives for this policy, and it is not spelt out for even journalists to propagate it well. What is it that we are using the LI to achieve? We want to enhance local productivity. We want to attain self-sufficiency for a period of time. And what are the timelines for this? It doesn’t spell out the timelines. We are not doing this policy in the abstract. All that we are saying is that we should know the timeline so that when we are going to be restricted, we can hold on to something.”
Dr. Joseph Obeng
In the interim, GUTA is one of the six business associations united under the Joint Business Consultative Forum. The group has presented a petition to Parliament, urging the rejection of the import restrictions bill. The remaining five associations include the Food and Beverages Association of Ghana (FABAG), Importers and Exporters Association of Ghana, Ghana Institute of Freight Forwarders (GIFF), Chamber of Automobile Dealership Ghana (CADEG), and Ghana National Chamber of Commerce and Industry (GNCCI).
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