In 2017, the Ghanaian government revamped the fertilizer subsidy program under the Planting for food and Jobs (PFJ) initiative, allowing farmers to purchase farm inputs, especially fertilizer and seeds, at a subsidized cost. The government thus paid 50% of the price. The program aims to reduce poverty and ensure food security at household and national levels by increasing access to improved farm inputs.
Though the program’s goals were similar to those of its predecessors, the fertilizer Subsidy Program, which ran from 2017 to 2021 saw some improvements as a result of the 50 percent subsidy. However, the 2022 PFJ budget has been affected as a result of the Russia-Ukraine Crisis following the global Covid-19 crisis. This has affected the smooth implementation of the program this year as government has planned to slash down the subsidy to 15%. This has raised a lot of discussions among Ghanaians as to whether the project can improve Ghana’s food security in the upcoming years.
Since its inception, the program has faced several hitches, such as low supply at selling points, accusations of corruption, and a lack of support from suppliers. Agriculture policy experts have questioned the program’s effectiveness and recommended that the leakages of the program be looked at as a more effective way of improving food security.
Food security issues in Ghana
The issue of food security in Ghana has been in the headlines for some time following the Russia-Ukraine war. Dr. Nyaaba, president of the Peasant Farmers Association of Ghana (PFAG), has revealed that following the hype the PFJ policy received nationally and globally, the PFJ has done little to improve Ghana’s economic livelihoods and food security status as a whole.
The PFJ accounts for over more than half of Ghana’s agriculture budget. “If proper scrutiny was done before executing the project, the multiplier effect could have been higher than we are seeing,” Dr. Nyaaba said. Adding that despite the significant investment in the PFJ, only maize and rice saw a tremendous increase in production in 2021.
In adding her voice, Ms. Adedolapo Alabi, an Agribusiness expert, said, “We need to refocus the program and do it as is done in other countries like South Africa where large scale farmers are subsidized, creating jobs for the poor and food security for the nation,” she said—adding that large scale farming can increase production.
In South Africa, the government subsidized those who were not considered loan worthy by financial institutions through the Agricultural Credit Board from the 1950s. The same approach would be a better option for Ghana, Ms. Adedolapo said.
Economists and other Agribusiness experts have also cautioned that despite the increase in maize and rice production, food insecurity still lingers in Ghana as food availability goes beyond maize and rice production and includes other dietary requirements. Access to food also depends on the ability to purchase foods from the market.
Speaking to the Vaultz news, Ms. Rhoda Alabi revealed that “The government of Ghana needs to critically reconsider how it can improve the PFJ program to have a meaningful impact on the country’s food security.”
The Agric. Minister said in an interview that the agriculture sector in Ghana is bubbling with life; However, critics may argue that the project has done little to improve the country’s food security; the opposite is true as the government registered a maize surplus of 1,356,000 metric tons in 2021. Rice production was around 560,000 metric tonnes, but the ministry produced 1.1 million metric tonnes 2021. He added that one of the main reasons Ghana remains food secured is because of the increase in production of these staple foods.
Some experts have affirmed that Ghana’s agricultural subsidy program can improve food security if a more holistic approach is used in solving all the grassroots leakages attached to the problem. Others experts are of the view that food security goes beyond only inputs subsidy, hence the government should review the entire agriculture value chain to see where it can be made better as far as food security is concerned.
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