NAFCO Needs GHS 770 Million for Rice Surplus

The National Food Buffer Stock Company (NAFCO) says it needs at least GHS 770 million. This money is needed to purchase surplus rice from local farmers. A large amount of rice is currently unsold. This situation stems from the 2025 and 2026 farming seasons.

Emmanuel Arthur, NAFCO's Senior Manager for Corporate Affairs, explained the situation. He spoke to Citi FM on May 5, 2026. The government released GHS 100 million for procurement in 2025. NAFCO is still using these funds to buy rice. The company has not yet used all the available money. Purchases are actively happening on the ground.

This rice surplus highlights a challenge in Ghana's agricultural sector. It follows a directive in March 2026. President John Dramani Mahama ordered rice procurement for schools to go through NAFCO. Priority was to be given to local rice. NAFCO was established in 2010. Its goal is to maintain a national food reserve. This glut shows a mismatch between production and the capacity to absorb it.

Mr. Arthur stated that the required GHS 770 million is much more than current funds. He also mentioned a GHS 200 million allocation. This was announced in the 2026 budget. However, this amount has not yet been released. NAFCO is waiting for these additional funds. The agency stressed that all purchases made so far are from Ghanaian farmers. This addresses claims that cheaper smuggled rice is being bought.

Industry figures have expressed concern about the unsold rice. Dr. Terence Adda-Balinia from the Ghana Rice Producers and Processors raised issues in early May 2026. He alleged NAFCO had ignored a presidential order. Ivan Sakitei, former Executive Secretary of the Ghana Rice Interprofessional Body, reported unsold rice from December 2025. He noted a lack of progress after meetings with regional officials.

The implications of this rice glut are significant for farmers. Unsold produce can lead to financial losses. It can also discourage future planting. NAFCO's ability to secure adequate funding is crucial. This will determine its success in stabilizing farmer incomes. NAFCO is also working with the World Food Programme. They are improving storage facilities. This prepares for future procurement efforts.

The host of the Citi FM program suggested NAFCO publish procurement data. This would involve listing farmers and mills. Mr. Arthur agreed to consider this suggestion. Transparency in procurement could help build trust. It would also counter accusations of favouritism or improper dealings. The government's commitment to supporting local rice production is being tested.

NAFCO's operations are separate from the Free SHS supply chain. However, both prioritize local rice. The GHS 100 million is for the national food reserve. The Free SHS program uses local rice too. The current financial gap highlights a systemic issue. Ghana aims for food security. This requires effective buffer stock management.

The economic impact extends beyond NAFCO. It affects input suppliers, millers, and rural economies. Farmers need consistent markets for their produce. The government faces a decision on how to fund this deficit. The GHS 770 million request represents a substantial public finance requirement. NAFCO's ability to manage this situation will influence future agricultural policies.