The Government of Ghana has registered 45 licensed buying companies (LBCs) to purchase grains directly from farmers at guaranteed minimum prices. This action by the Ghana Buffer Stock Company aims to address recurrent grain surpluses and protect farmers' incomes.
This initiative responds to significant post-harvest losses and price instability that often affect farmers. It targets specific grains such as rice, maize, and soya. The LBCs will provide stability for agricultural producers.
This policy is a critical part of Ghana's broader agricultural modernisation agenda. It seeks to integrate farmers into structured markets and reduce reliance on intermediaries. Such market interventions are vital for boosting food security and economic stability.
Mr. John Dumelo, Deputy Minister of Food and Agriculture, explained the government's strategy in Parliament. He stated that the government budgeted GHS 100 million in November 2025 and an additional GHS 200 million in the 2026 budget. These funds will support the Ghana Buffer Stock Company to purchase, process, and store grains.
The guaranteed minimum price scheme will ensure farmers earn fair compensation for their produce. This stability encourages increased production across the country. It also lessens the impact of market fluctuations on farming communities.
The government is collaborating with the World Bank Group to refurbish food storage warehouses nationwide. This partnership will enhance storage capacity and reduce waste. Improved storage facilities will stabilise grain supplies throughout the year.
Mr. Dumelo stressed that refurbished warehouses will create a strategic reserve. This reserve allows Ghana to manage excess production and prevent sudden price drops. It also improves the country’s ability to handle potential food shortages.
This intervention is designed to link producers directly with licensed buyers. The goal is to eliminate exploitative middlemen and ensure transparent grain trading. This approach benefits farmers and strengthens the agricultural supply chain.
Mr. Eric Edem Agbana, MP for Ketu North, expressed support for the measures. He urged the government to ensure timely implementation of the programme. Farmers in grain-producing areas have historically suffered losses due to inadequate storage and unstable markets.
The Ministry of Food and Agriculture has committed to rapid implementation. The Ghana Buffer Stock Company has already begun engaging the registered LBCs. This engagement operationalises the purchase scheme quickly.
This initiative will protect farmers and contribute to national food security. It will also stabilise grain prices and reduce Ghana’s dependence on imports. The government views strong support for farmers as essential for economic growth.