Tag: Rice importation

  • Ghana Not In A Position To Ban Importation Of Rice- CARP

    Ghana Not In A Position To Ban Importation Of Rice- CARP

    Chairman of the Competitive African Rice Platform (CARP), Yaw Adu Poku, has revealed that Ghana is in no position to ban the importation of rice.

    According to him, rice production in the country is not enough to attend to domestic consumption. He lamented that the decline of domestic rice supply gives little room to consider the prospects of banning rice import in the country.

    Mr Poku indicated that there is the need to put pressure on the local economy to shore up production of rice in the country, as players in the country are ready to partner with government.

    “The truth is that we are not in a position to ban the importation of rice, even onions, we are not in the position, simply because we need to fill the gap and we are not ready to fill that gap yet. So, we have to let it be a gradual process. The sad story is that Ghana has abundance of lands, the traditional rulers are more than eager to give their lands out for farming. We have a whole army of farmers who are willing and ready to go in there and farm.”

    Yaw Adu Poku

    Furthermore, Mr Poku described Ghana’s rice yield as “terrible” due to the lack of needed infrastructure and training. Owing to this, he explained that the price of local rice becomes so high to the point where it cannot compete with the imported rice. This, he highlghted, must be tackled.

    “The other thing is that rice is not just like planting maize or soy, you need a lot of input, which is not readily available. So, it becomes a very difficult job – those interventions are what we need. As to the private sector, yes, a lot of well-heeled people are looking at the rice sector now and thinking about going into it. Their fear is that will they not be challenged with the import, which is real. That will be government decision, but that decision will only be executed when government feels that we are in a position to supply and fill the gap, which we still are not there.”

    Yaw Adu Poku

    Among other things, he stated that the lands and farmers are ready to be put to use, but there are also the challenges with equipment to make it work.

    Encouraging local rice production under PFJ II

    Emphasizing the need to encourage local rice production, Mr Poku noted that Ghana needs about 3 million metric tonnes of paddy to translate to about 1.8 million tonnes of milled rice – which makes up for rice consumed internally.

    Reacting to the launch of the Phase II of the Planting for Food and Jobs (PFJ) by President Akufo-Addo, which will see the strengthening of linkages between actors along eleven selected agricultural commodity value chains broadly categorized into grains, roots and tuber, vegetables and poultry, Mr Poku highlighted that Ghana consumes in excess of 1.5 million metric tonnes of milled rice, hence the need for government to ensure its success.

    “So, if we are launching the PFJ II, this is where I will humbly plead with the minister to [look into it], and then we will get a very good programme going which will take out the $1 billion that we exchange to bring rice. It has a chain effect, it will definitely go into maize, and once it gets into maize, soy will follow and then poultry will also be available, so that all this money that we take to bring in this consumable will find itself into the local economy and enhance the wealth creation.”

    Yaw Adu Poku

    Moreover, the chairman of CARP emphasized that government must show real commitment in the second phase of the PFJ. He revealed that it must go beyond the “fanfare, drum-playing and the media” publicity, and handle the programme effectively.

    “I am grateful the President himself was there and we are going to hold him to the fact that this time it has to work.”

    Yaw Adu Poku

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  • Chamber Of Agribusiness Urges Gov’t To Allocate Funds For Rice Production In 2023 Budget

    Chamber Of Agribusiness Urges Gov’t To Allocate Funds For Rice Production In 2023 Budget

    Chief Executive Officer of the Chamber of Agribusiness, Anthony Morrison has expressed the need for government to allocate funds to the Agric Ministry that will target rice production.

    According to him, there should be a one year plan in which the 2023 budget will allocate considerable funds to the Agriculture Ministry for production of rice so that by the next 8 months more rice would be locally produced.

    “This current budget should allocate funds to the Agric Ministry that will target rice production for the next 8 months. We should have rice on the market for which at the end of the day, the Bank of Ghana can roll out such a policy. Even that one, it is supposed to be gradual.”

    Anthony Morrison

    Mr Morrison revealed that the withdrawal of forex by government will not solve the fundamental problem within the Ghanaian economy. Instead, he indicated that the government should focus on investing in local production to help reduce the cost of production and ensure an increased production to make local producers more competitive.

    “It is a harsh policy in the sense that when you put up such a policy, you should first consider your local capacity. As we speak now, we produce only 39% of the rice we consume in Ghana. So, if we issue such a policy and end up not having the local supply, it will turn out that you create a shortage.”

    Anthony Morrison

    The CEO of the Chamber explained that when rice shortage occurs, the limited local supply will definitely push the price up. He highlighted this will further worsen the economic realities of most people.

    “The timing of the policy too is considered as another problem, especially considering that we are getting into the Christmas season where the demand for rice peaks.”

    Anthony Morrison

    Planting for Food and Jobs Initiative

    Describing the move of government on forex as a knee jerk reaction, Mr Morrison stated that the directive was issued to give Ghanaians the impression that the Bank of Ghana is working. He noted that the Planting for Food and Jobs (PFJ) is equally not working because it lacks direction.

    “We have a policy which is the Planting for Food and Jobs which has no target. There was no KPI so at the end of the day you cannot accuse the minister that he has failed in terms of rice importation control. The minister himself cannot boast that out of his policy, he has been able to reduce rice importation by 30% or 40%.”

    Anthony Morrison

    Mr Morrison’s comments followed information from the Central Bank to banks on its discontinued support in providing forex. The notice revealed that in accordance with the President’s directive, issued in his recent address to the nation on the Ghanaian economy on Sunday, 30th October, 2022, the Bank of Ghana will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.

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