Accra: The National Food Buffer Stock Company (NAFCO) has appealed to the government for an additional GHS100 million to purchase surplus produce, particularly paddy rice, to curb post-harvest losses. Mr. Osmond Amuah, Deputy Chief Executive Officer of NAFCO, made this appeal at a press conference in Accra, highlighting the exhaustion of an earlier GHS100 million allocation under the national food reserve programme.
According to Ghana News Agency, the initial funding was utilised to procure 60,000 bags of rice, 120,000 bags of maize, and 10,000 bags of gari, offering some relief to farmers but failing to absorb the glut in key production zones. Mr. Amuah explained that the first GHS100 million was applied prudently to support farmers in distress, but the volumes on the market remain high, necessitating additional funding to prevent farmers from losing their livelihoods.
Mr. Amuah revealed that the Minister for Food and Agriculture had agreed to present the request to Cabinet for urgent consideration, with the proposed funds designated exclusively for paddy rice purchases. He also announced that NAFCO’s Producer Price Determination Committee had set a floor price of GHS5 per kilogram for paddy rice to ensure fair compensation for farmers. This measure is intended to guarantee farmers a decent return by prohibiting aggregators working with NAFCO or on behalf of the government from buying below the set price.
The Deputy CEO emphasised that the additional funding is critical to prevent post-harvest losses and safeguard food security, as many farmers lack adequate storage and market access. In recent weeks, rice farmers in the Upper East, Northern, and Volta regions have expressed concerns over unsold produce, with some forced to sell at reduced prices or incur losses. Farmers at the Tono and Fumbisi irrigation schemes reported a drop in the price of a 220-kilogram bag of paddy from GHS900 last year to about GHS700, despite rising input costs.
Mr. Amuah stated that the proposed GHS100 million support would help address these concerns by stabilising the market and protecting farmers’ incomes. He underscored the need for continued investment in storage infrastructure, financing, and institutional capacity to ensure the long-term sustainability of the national food reserve system.
Established in 2010, NAFCO is mandated to maintain national food reserves, stabilise producer prices, and ensure food availability during shortages.