Ghana Rice Producers Face GHS 5 Billion Unsold Stock

Ghanaian rice producers are currently holding an estimated one million metric tonnes of unsold paddy rice. This surplus represents a staggering GHS 5 billion in value for the local industry.

This significant glut stems from a severe shortage of buyers for domestically produced rice. The Association of Ghana Rice Producers and Processors attributes the crisis primarily to the failure of state procurement systems. They say the National Food Buffer Stock Company (NAFCO) has not bought local rice despite presidential directives.

The issue aligns with broader concerns about sustaining Ghana's agricultural sector and food security. Ghana imports 60 percent of its rice, spending over US$500 million annually. This long-standing reliance on imports has consistently challenged local production efforts.

Dr. Terence Adda-Balinia, an executive member of the Rice Producers and Processors Association, detailed the crisis. He stated, “Over one million farmers are overwhelmed by huge losses, with the situation posing high threats to sustainability of the local rice industry.” Major rice millers have suspended operations due to the overwhelming presence of cheap, smuggled rice in the domestic market.

The situation necessitates immediate and decisive government intervention to prevent further collapse of the local rice industry. Producers propose a temporary six-month moratorium on rice imports to allow existing local stocks to clear. They also call for a transparent import quota system, ensuring imports only cover genuine supply gaps. Furthermore, public institutions like NADMO, schools, hospitals, and prisons should exclusively procure locally produced rice.

Such measures would help stabilize the market and protect the livelihoods of numerous farmers. Without stronger policy support, significant investments made in the local rice sector risk being undermined. The government's response will shape the future of local rice farming and impact Ghana's food independence efforts.