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Experts say that agricultural financing can go a long way to help unlock the huge potential in the sector
Experts say that agricultural financing can go a long way to help unlock the huge potential in the sector

Agric stakeholders want holistic approach to solve problems

Stakeholders in the agricultural sector have suggested a holistic approach to addressing the challenges in the sector.

They said although the total earmarked expenditure in this year’s budget statement and government’s economic policy statement had increased to GH¢450.33 million, from GH¢355.14 million in 2016, there was the need for more to cover the other sub-sectors to grow.

The Programme Officer of the Peasant Farmers Association of Ghana (PFAG), Mr Charles Nyaaba, in an interview on March 7, 2017 said, however, that the GH¢421.52 million allocation to the Fertiliser Subsidy Programme (FSP) and the Agricultural Mechanisation Service Centres (AMSEC) gave hope for the future.

“It is positive because the allocation to the FSP has more than doubled. However, the problem of the sector is not only about crop production but there are other challenges within the chain. So we are thinking that addressing the challenges in the sector should be a package,” he stated.

The General Secretary of the General Agricultural Workers Union (GAWU), Mr Edward Kareweh, said the budget on agriculture was heavily concentrated on the crop sub-sector in line with the overall government’s policy of ‘Planting for Food and Jobs’ (PFFJ).

Advocacy on FSP and mechanisation

Perhaps, Mr Kareweh said, the huge allocation to initiatives such as the FSP and mechanisation in the 2017 budget is due to the strong advocacy by stakeholders over the years on the two areas.

He admitted that advocacy could not be ruled out, stressing that there was a direct correlation between advocacy and the budgetary allocation to the sector.

“The expenditure pattern proves that we tend to import more as a country. In 2015, we spent US$1.5 billion on importation of food to this country, and that huge amount attracted so much advocacy from concerned organisations. Therefore, the allocation is in response to the advocacy to produce more food and reduce import bills on foods,” he added.

 

Growth

The agriculture sector is projected to grow by 3.5 per cent in 2017, supported by the continued recovery of the crops sub-sector and projected increase in the production of rice, maize and the tubers.

Again, the government will launch the PFFJ campaign designed to encourage all citizens, both urban and rural, to take up farming as a full or part-time activity.

The campaign will be anchored on five pillars, namely fertiliser supply, provision of improved seeds, provision of dedicated extension services, marketing and e-agric and monitoring.

This initiative is expected to improve maize production by 30 per cent, rice by 49 per cent, soya bean by 25 per cent and sorghum by 28 per cent; and will create 750, 000 direct and indirect employment.

Mr Kareweh stated the need to create markets for the agricultural produce that was being envisaged in the budget.

“The assumption that there is ready market for rice and other grains is fictitious because it has already been taken over by cheap imports, so if you increase production without space to accommodate the expected increase there will be glut,” he said. — GB

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