The Ministry of Food and Agriculture in Ghana has reported a substantial decline in rice imports, indicating a 45.34% reduction between 2021 and 2023. This decline, from 805,000 metric tons in 2021 to 440,000 metric tons in 2023, has raised both concerns and optimism within the country’s agricultural landscape.
According to the ministry, various stakeholders in the agricultural industry attribute this decline to notable policy changes. Increases in import taxes and the reversal of the benchmark value discount policy, specifically targeting selected imported products, including rice, have played a pivotal role in reshaping the dynamics of the rice import market. The consequence has been a noticeable decrease in the import volume, as reflected in the recent data.
Farmers in Ghana have long grappled with challenges related to a lack of buyers for their harvested rice, leading to surplus stockpiles in warehouses across the country. Additionally, the presence of cheap smuggled foreign rice brands has created price disparities in the market, affecting the income of local farmers.
To address the shortfall in the overall national rice supply, the report suggests that Ghana should aim to produce 1.0 million metric tons of rice locally. Achieving this target would not only make the country self-sufficient but also result in substantial economic benefits, saving approximately $500 million in import expenditure annually.
Recognizing the importance of fostering local production, the Ghanaian government implemented a ban on cereal exports from September 2021 to September 2022. This strategic move was designed to ensure price stability and increase the market availability of locally produced rice. The government’s commitment to supporting domestic production aligns with efforts to address the nation’s import bill, which exceeded $10 billion annually, encompassing rice, fish, poultry, and palm oil.
Rice Self-Sufficiency Trends
Agriculture Research for Sustainable Development (CIRAD, 2007) highlights the fluctuating nature of Ghana’s rice self-sufficiency ratio over the years. From a decline to 24% in 2006, it increased to approximately 43% in 2020. While this progress is encouraging, the report emphasizes the need for sustained efforts to enhance the competitiveness of the local rice value chain.
The significant reduction in rice imports to Ghana between 2021 and 2023 underscores the potential for the nation to strengthen its domestic rice production. As the government continues to implement policies supporting local farmers and curbing the influx of cheap foreign rice, the country is poised for further growth and economic transformation.
The call for increased efforts to make the local rice value chain more competitive resonates as Ghana works towards achieving self-sufficiency and reducing its dependency on costly imports.
In 2017, the Government of Ghana launched its flagship policy, the Planting for Food and Jobs which was to modernize agriculture, improve production efficiency, and achieve food security, and profitability for farmers. The second Phase of the policy was further launched in July 2023 to leverage information technology to avoid the key pitfall in the phase one of the PFJ.
The PFJ summarily targeted a significant increase in agricultural productivity and pursued a value-addition strategy, aimed at rapidly ramping up agro-processing and developing new and stable markets. However, critics say the programme has been a failure as food inflation rose to over 50 percent last year forcing the Ministry to transport food from rural areas to cities to mitigate the impact.
Meanwhile, the government plans to provide 34,682 metric tons of seeds to farmers in 2024.
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