National Food Buffer Stock seeks additional GH¢100m to purchase surplus paddy rice

The National Food Buffer Stock Company (NAFCO) has appealed to government for an additional GH¢100 million to purchase surplus produce, particularly paddy rice, to curb post-harvest losses.

Mr Osmond Amuah, Deputy Chief Executive Officer of NAFCO, who made the appeal at a press conference in Accra on Thursday, said the request followed the full utilisation of an earlier GH¢100 million allocation under the national food reserve programme.

He said the initial funding was used to procure 60,000 bags of rice, 120,000 bags of maize, and 10,000 bags of gari, bringing some relief to farmers but falling short of absorbing the glut in key production zones.

“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,” he said.

Mr Amuah disclosed that the Minister for Food and Agriculture had agreed to present the request to Cabinet for urgent consideration, with the proposed funds earmarked exclusively for paddy rice purchases.

He announced that NAFCO’s Producer Price Determination Committee had set a floor price of GH¢5 per kilogram for paddy rice to ensure fair compensation for farmers.

“This means that 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 stated.

Mr Amuah emphasised that the additional funding was critical to prevent post-harvest losses and safeguard food security, noting that many farmers lacked adequate storage and access to markets.

In recent weeks, rice farmers in the Upper East, Northern, and Volta regions have raised concerns over unsold produce, with some forced to sell at reduced prices or incur losses.

Farmers at the Tono and Fumbisi irrigation schemes reported that the price of a 220-kilogram bag of paddy had dropped to about GH¢700, down from GH¢900 last year, despite rising input costs.

They called for increased government intervention to absorb the surplus and stabilise prices to sustain their livelihoods.

Mr Amuah said the proposed GH¢100 million support would help address these concerns by stabilising the market and protecting farmers’ incomes.

He underscored the need 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.

Source: GNA

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