The National Food Buffer Stock Company (NAFCO) has appealed to the government for an additional GH¢100 million to buy surplus farm produce, particularly paddy rice, in a bid to prevent post-harvest losses and protect farmers’ incomes.
Mr Osmond Amuah, Deputy Chief Executive Officer of NAFCO, made the appeal at a press conference in Accra on Thursday, explaining that the request followed the full utilisation of an earlier GH¢100 million allocation under the national food reserve programme.
He said the initial funds were used to purchase 60,000 bags of rice, 120,000 bags of maize, and 10,000 bags of gari, which provided temporary relief to farmers but were insufficient to absorb the glut in key production areas.
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“The first GH¢100 million was applied prudently to support farmers in distress, but the volumes on the market are still high. We need additional funding to mop up the remaining grains to prevent farmers from losing their livelihoods,” Mr Amuah said.
He disclosed that the Minister for Food and Agriculture had agreed to submit the proposal to Cabinet for urgent consideration, with the new funds earmarked primarily for purchasing paddy rice.
Mr Amuah further announced that NAFCO’s Producer Price Determination Committee had set a minimum price of GH¢5 per kilogram for paddy rice, ensuring farmers receive fair compensation. “No aggregator working with NAFCO or on behalf of the government will be permitted to buy below GH¢5 per kilogram. It’s a protective measure to guarantee farmers a decent return,” he emphasised.
He noted that the additional funding was crucial to prevent wastage, maintain market stability, and safeguard food security, adding that many farmers lack adequate storage and access to reliable markets.
Recent reports from the Upper East, Northern, and Volta regions revealed that rice farmers are struggling to sell their produce, with some forced to accept lower prices or incur losses. Farmers at the Tono and Fumbisi irrigation schemes said the price of a 220-kilogram bag of paddy rice had dropped to about GH¢700, down from GH¢900 last year, despite rising production costs.
They have appealed for stronger government intervention to stabilise prices and sustain their livelihoods.
Mr Amuah stated that the proposed GH¢100 million would help address these concerns, stabilise the market, and protect farmers’ earnings. He also stressed the need for continuous investment in storage facilities, financing mechanisms, 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.
