The Ghana Soybean Farmers and Aggregators Association has renewed its call for the repeal of the Export and Import Restriction of Grains Regulation 2022 (L.I. 2467), arguing that the policy has failed to achieve its intended goal of ensuring local processing factories have adequate access to soybeans.
Instead, the ban has created unintended consequences, leaving farmers and aggregators struggling with surplus produce and no market.
When the government introduced the soybean export ban in 2022, the intention was to prioritize local processing by ensuring that factories had a steady supply of raw materials. However, the Ghana Soybean Farmers and Aggregators Association insists that this move has backfired.
According to Abdul Hakeem Issah, Director of Administration for the association, the restriction has significantly disrupted the soybean market. Buyers who traditionally purchased Ghanaian soybeans have now turned to neighboring countries such as Benin, Togo, and Nigeria, where they face no such export limitations. This shift has left Ghanaian farmers with large quantities of unsold produce, pushing them into financial distress.
“We want the current government to lift the ban and allow the export of soybeans. Currently, there is a lot of soybean in the system, but all the buyers have diverted to other countries. They are in Benin, Togo, and Nigeria. They are finding it difficult to come to Ghana just because of the government’s announcement of a ban. The exporters are not coming. Farmers have the soybean, yet there is no market. So, it’s a constraint. We don’t understand why the previous government was so much interested in placing the ban.”
Abdul Hakeem Issah
The Unintended Market Distortion
While the export restriction aimed to promote local processing, many processing plants in Ghana are still unable to absorb the excess soybeans produced by farmers. This has resulted in a supply glut, forcing farmers to either sell at extremely low prices or let their produce go to waste.
Industry analysts believe that instead of an outright ban, the government should have explored policies that encourage local processing while still allowing farmers to access foreign markets. A more balanced approach would enable processors to secure raw materials at competitive prices while also ensuring farmers have multiple avenues to sell their produce.
Beyond the issue of soybean exports, the association is also calling for a major shift in Ghana’s fertilizer financing policy. Farmers argue that the government’s free fertilizer programs have been poorly managed, often used as a form of political patronage rather than truly benefiting those who need them most.
Issah and other industry stakeholders believe that a better solution would be to eliminate all taxes and levies on fertilizer imports and local production. This, they argue, would make fertilizers more affordable for farmers, ensuring better crop yields and enhancing food security.
“Instead of the government bringing in fertilizer and paying dealers to reduce the price, why doesn’t the government just remove all taxes and levies on fertilizer, so that the commodity becomes cheaper?”
Abdul Hakeem Issah
By reducing taxes and levies, the cost of fertilizers would naturally decrease, making them accessible to a wider range of farmers. This approach would also minimize the inefficiencies and corruption associated with government-run fertilizer subsidy programs.
Ghana’s soybean industry has the potential to be a major player in both local and international markets, but restrictive policies like the 2022 export ban have hindered its growth. If the government wants to support farmers and strengthen the agricultural sector, it must reconsider its stance on soybean exports and fertilizer policies.
The association is urging the new administration to engage with stakeholders to find a more sustainable solution that benefits both farmers and processors. A balanced trade policy that allows controlled exports while promoting local processing would help stabilize the market, ensuring that Ghanaian soybeans remain competitive both locally and internationally.
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