Accra: The Association of Ghana Rice Producers and Processors has expressed concern over an estimated one million metric tonnes of unsold paddy rice currently saturating the local market. The surplus, valued at GHS5 billion, is attributed to a significant shortage of buyers for the commodity.
According to Ghana Web, the association has indicated that the issue stems from the failure of state procurement systems to prioritize the purchase of locally produced rice. Dr. Terence Adda-Balinia, an executive member of the association, highlighted that despite a directive from the President, the National Food Buffer Stock Company (NAFCO) has consistently not purchased rice from Ghanaian farmers. This has led to a suspension in operations for major rice millers, as the local market faces an influx of cheaper, smuggled rice.
Dr. Adda-Balinia noted that over one million farmers are experiencing significant losses, which poses a substantial threat to the sustainability of the local rice industry and increases the risk of unemployment within the sector. Ghana imports approximately 60 percent of its rice, spending over US$500 million annually. While imported rice tends to be cheaper and more attractively packaged, the high import volumes have further diminished demand for locally produced rice.
The association cited poor marketing and distribution channels, low farm-gate prices, and high production costs as persistent challenges facing the local production sector.
In response to the crisis, rice producers and processors are urging the government to guarantee markets for domestically produced rice to protect investments in the sector. They propose a temporary six-month moratorium on rice imports to allow existing local stocks to be sold. Additionally, they recommend a transparent import quota system to ensure imports only fill supply gaps rather than compete with local production.
The association is also calling on the Ghana Revenue Authority and security agencies to intensify efforts against rice smuggling, which disrupts the market. Furthermore, they advocate for a directive requiring public institutions, including those under the National Disaster Management Organisation (NADMO), schools, hospitals, and prisons, to procure only locally produced rice.
To further support the industry, the producers propose introducing annual minimum farm-gate prices and establishing a special financing facility to provide low-interest credit for rice millers, particularly during harvest periods. Industry stakeholders believe these measures are vital for sustaining growth, improving farmers' incomes, and reducing reliance on imports.