Accra: The Association of Ghana Rice Producers and Processors is urging the government to impose a six-month ban on the importation of foreign rice varieties to help deplete the existing overflow of local rice in the market.
According to Ghana Web, the Association has reported to B and FT that the market is currently burdened with approximately one million metric tonnes of unsold paddy rice, valued at GHS5 billion. This oversupply is a significant concern for rice farmers throughout the country.
Dr. Terence Adda-Balinia, an executive member of the Association, attributes the glut to insufficient demand and a lack of buyers for local rice. At a recent World Bank Civil Society Organisation engagement focused on food security, Dr. Adda-Balinia emphasized the Association's proposal for a temporary six-month ban on rice imports. This measure aims to clear existing local stockpiles.
Additionally, the producers are advocating for a transparent import quota system. This system would ensure that imports are only made to fill supply gaps rather than competing directly with local production. Rice consumption in Ghana is nearing two million metric tonnes annually, with 60-70 percent of that being imported varieties.
The preference for imported rice is largely driven by urbanization, rapid population growth, and a cultural preference for parboiled, fragrant long-grain rice. Dr. Adda-Balinia highlighted that this preference has caused major local rice millers to halt operations due to the influx of cheap, smuggled rice.
"Over one million farmers are facing huge losses, posing significant threats to the sustainability of the local rice industry and potentially leading to an unemployment crisis in the sector," Dr. Adda-Balinia stated.
While imported rice is often seen as cheaper, better packaged, and more appealing, the Association argues that the large volumes of imports are decreasing the demand for locally produced rice. They also point out ongoing challenges in marketing and distribution, low prices for farmers, and high production costs.
The Association is calling on the government to prioritize guaranteed markets for local rice. They warn that without stronger policy support, substantial investments in the sector could be jeopardized. To aid farmers and processors, they propose setting annual minimum farmgate prices and establishing a special financing facility to offer low-interest credit to rice millers, especially during harvest periods.