Accra:Global food prices have risen by 5.8% in September compared to the same period last year, as reported by the United Nations Food and Agriculture Organization (FAO). This increase could significantly impact Ghana's food import expenses, leading to higher costs for various food items.
According to Ghana Web, the FAO Food Price Index, which monitors international prices of a basket of traded food commodities, averaged 136.0 points in September, marking a 1.5% increase from August. Prices for cereals, vegetable oils, and sugar all saw increases during this period.
Ghana's food import bill was substantial, with the country spending GHS36.46 billion in 2025, according to the Ghana Statistical Service. Among the imports, rice was a major expenditure, costing GHS3.58 billion, while processed cereal grains were the largest single food import at GHS2.94 billion. Sugar and palm oil, also significant imports, have been affected by rising global prices.
The most significant pressure came from grains, with the FAO Cereal Price Index rising 5.1% in a month, standing 17.2% higher than a year ago. Wheat prices increased by 6.3% due to logistical issues in the Black Sea and unfavorable weather in North America. Maize prices rose by 5.6%, influenced by lower yields in the United States and reduced exports from Brazil.
The ongoing conflict in the Middle East has added to these pressures. The FAO highlighted concerns over shipping through the Strait of Hormuz, which has elevated costs for fuel, fertilizer, and freight, further supporting food commodity prices.
Sugar prices increased as well, with the FAO Sugar Price Index up by 6.1% since August, reaching its highest level since April 2025. Lower production forecasts in Thailand and crop concerns in India, exacerbated by below-average rainfall and El Niño conditions, have tightened supply.
Cooking oil prices remain elevated, with the FAO Vegetable Oil Price Index rising 0.9% in September, mainly due to palm oil. Prices have increased for four consecutive months due to strong global demand and the impact of dry weather on production in Southeast Asia.
Rice prices are also on the rise, with the FAO All Rice Price Index up 1.4% in September, driven by concerns over weather and supply. Ghana is heavily reliant on rice and wheat imports, with forecasts indicating about 1 million tonnes of rice and 1.12 million tonnes of wheat imports in the 2026/27 marketing year.
A strong El Niño could worsen the situation, with predictions of widespread drought affecting major rice producers in Southeast Asia. Past shortages during El Niño have led countries like India, Vietnam, and Thailand to restrict rice exports to control domestic prices.
There is some relief in other areas, as the FAO Meat Price Index fell 1.1% in September, with poultry prices dropping due to ample supplies from Brazil. The Dairy Price Index remained stable, significantly below the previous year's level.
The depreciation of the cedi has added to the burden, losing 3.9% of its value against the US dollar in September, increasing costs for importers. Despite this, food prices in Ghana have remained stable, with food inflation at 3.0% in August and imported inflation at 2.2%.
The Bank of Ghana's Monetary Policy Committee has warned that rising food prices, driven by higher energy, fertilizer, and transport costs, pose external risks to inflation. The potential impact of El Niño on local food harvests is also a concern.
Fertilizer costs have been influenced by disruptions in shipping through the Strait of Hormuz, affecting global trade. Although prices have eased as shipping partially recovered, uncertainty remains. These factors combined suggest that maintaining low food prices may be challenging as the festive season approaches.