NAFCO Needs GHS 770 Million to Tackle Rice Glut

The National Food Buffer Stock Company (NAFCO) requires GHS 770 million to purchase the surplus rice from the 2025 and 2026 farming seasons. This significant amount is needed to absorb the excess local rice production, with only GHS 100 million having been released by the government in 2025 and procurement still ongoing.

This substantial funding gap has left many Ghanaian rice farmers with large quantities of unsold produce. Emmanuel Arthur, NAFCO's Senior Manager for Corporate Affairs, confirmed the ongoing purchases with the initial GHS 100 million. However, he stressed the inadequacy of current funds to address the widespread rice glut, affecting thousands of smallholder farmers.

Ghana consistently strives for food security and increased local production, especially in staple crops like rice. The government's 'Planting for Food and Jobs' initiative aims to reduce reliance on imported food. NAFCO's struggle to clear local rice surpluses undermines these efforts and could disincentivize farmers from future production. Ghana's rice consumption continues to rise, making local availability crucial.

Emmanuel Arthur of NAFCO stated in a Citi FM interview on May 5, 2026, that the GH¢100 million allocated in 2025 is still being used for purchases. He clarified that the GHS 200 million announced in the November 2025 budget has not yet been received. Arthur also rejected claims that NAFCO was ignoring a presidential directive to prioritize locally produced rice. He affirmed that all purchased grain originates from Ghanaian farmers.

The current funding shortfall has significant implications for Ghana's agricultural sector and food security. Farmers, like Ivan Sakitei, an executive member of the Association of Ghana Rice Producers and Processors, still have thousands of bags of unsold rice from the December 2025 harvest. This situation threatens the livelihoods of rice farmers and could lead to a decrease in domestic rice cultivation. Decision-makers must urgently address the funding gap to prevent further losses for farmers and ensure the viability of national food buffer stock initiatives.

NAFCO works with licensed buying companies to procure grain and deliver it to various warehouses across the country. These storage facilities include locations in Buipe, the Bono and Ashanti regions, Jute in the Volta Region, and Tamale. The World Food Programme is assisting NAFCO in rehabilitating these storage facilities in preparation for future procurements. Akuse and Asutsuare, within the Kpong Irrigation Scheme, are key rice-producing areas supporting over 2,000 smallholder farmers. President John Dramani Mahama directed on March 5, 2026, that NAFCO centralize rice procurement for schools, prioritizing local rice for the School Feeding Programme and Free Senior High School. The GHS 100 million allocation is for the national food reserve, supporting broader food security objectives.