Stakeholders push for more investments to boost rice production
Stakeholders in the agriculture sector have reiterated their call on the government to make the right investments in rice production in the country to make the country self-sufficient.
They include the Peasant Farmers Association of Ghana (PFAG), Ghana Rice Millers Association (GRMA) and the General Agricultural Workers Union (GAWU).
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The call is on the back of the concerns raised by three farmer-baaed associations in the rice production sector over the negative impact the suspension of the benchmark policy will have on the industry. They feared the loss of over 300,000 direct and indire4ct jobs.
The call also follows the success story of rice in neighbouring Nigeria, was based on the fact that the country has a similar potential to become a net exporter of rice instead of importing, a situation which tends to contribute to the pressure on the local currency.
The Spokesperson for the stakeholders, Dr Charles Nyaaba, said with the right investments, Ghana could become a net importer of rice.
He said that was because all the 16 regions in the country had the potential to grow the commodity.
He, however, pointed out that the only reason why the country was not producing enough rice to feed its people was due to the lack of investments, particularly from the government.
“Most of the rice we usually harvest is done when they are dry and it is because the farmers cannot afford to buy combine harvesters. They have to wait for the few who have to finish theirs.
“So, I think that if government actually wants to industrialise this country and be able to improve on our local production, there is the need for proper investment in the agriculture sector,” he said in an interview after the group met with the Minority in Parliament over some developments in the sector.
He said investments, coupled with affordable credit facilities, were key in any effort to improve agriculture productivity; particularly, in relation to rice production, he said investment would be needed especially in the area of mechanisation.
Again, he said that worldwide, countries that have developed through agriculture did so through subsidy arrangements.
“Countries like Thailand and Japan give zero rates on agriculture loans but in our case we take loans with interest as high as 30 per cent and loans are also short term.
“Besides, it is difficult to access loans for farming activities as banks see it as risky. So, without a policy that will compel the banks to see agriculture as an area they needed to support, it will continue to be difficult for us to make a headway,” he said.
Benchmark prices
Another major issue of concern for the group is the reversal of the benchmark discount value.
Dr Nyaaba explained that they had had a series of engagement with ministries of Trade and Industry; Agriculture, and Finance on the development but the government was yet to act.
“We were surprised to hear that the government has suspended the reversal, perhaps due to pressure from other interested parties,” he said.
Reversal
The benchmark value discounts were first introduced to hedge against price hikes.
On January 13, 2022, the Ghana Revenue Authority (GRA) issued a statement announcing the indefinite suspension of the implementation of the reversal of the benchmark value discount policy.
It said the suspension was to allow greater consultation to take place.
- Rice has been identified in the Food and Agricultural Sector Development Policy (FASDEP) as an important food crop that should be given special attention for food self-sufficiency.
- Experts say rice production is very intensive such that farmers often complain about lack of mechanisation service, access to market and access to input.