The Rice Producers and Processors Association of Ghana (RIPAG) has urged the government to use the 2026 Mid-Year Budget Review to introduce stronger interventions for marketing local produce. The association warns that failure to do so could trigger higher food inflation next year. This call comes as farmers face severe financial pressure despite recent improvements in Ghana's overall economic indicators.
Dr. Charles Nyaaba, spokesperson for RIPAG, highlighted that many maize and rice farmers are still unable to sell produce harvested last year. He noted that production costs continue to rise, with farmers paying more for essential inputs like fertilizer, agrochemicals, and mechanization services. This situation creates a significant burden for local producers, impacting their ability to sustain operations and contribute to food security.
This issue fits into Ghana's broader economic narrative, where food prices have been a major driver of inflation. The recent decline in overall inflation has largely been attributed to moderating food prices. However, Dr. Nyaaba warns that this gain is coming at the expense of farmers, who are bearing the cost of these lower prices. If farmers reduce production due to unprofitability, the country could see food inflation rise again, undermining current economic stability efforts.
Dr. Nyaaba specifically called on Finance Minister Dr. Cassiel Ato Forson to announce measures ensuring ready markets for locally produced rice and maize. He acknowledged the government's decision to allocate GHS 200 million for purchasing rice and maize from local farmers. However, he stated this intervention has had only a marginal impact, covering less than 1% of farmers' total output.
The influx of imported rice and maize through Ghana's northern borders also exacerbates the problem, according to Dr. Nyaaba. These imports depress local prices, making it difficult for Ghanaian farmers to compete effectively. This situation highlights the need for comprehensive policies that support local agriculture while managing trade flows.
The Finance Minister is expected to present the 2026 Mid-Year Budget Review to Parliament on Thursday. This presentation will outline the government's fiscal performance and economic policy direction for the remainder of the year. Decision-makers will need to address the concerns of rice producers to prevent a potential surge in food inflation and ensure the sustainability of local agriculture. Markets will closely watch for specific measures aimed at bolstering domestic food production and market access.
The government's response to these calls will be crucial for both farmers' livelihoods and the nation's economic stability. A failure to act could lead to reduced agricultural output, increased reliance on imports, and renewed inflationary pressures. Effective market mechanisms and support for local farmers are essential to secure Ghana's food future and maintain economic gains.