Agribusiness Chamber Warns of Grain Glut, Calls for Temporary Rice Import Ban to Protect Local Farmers
The Chamber of Agribusiness Ghana (CAG) has declared what it describes as a national grain crisis, warning that the surplus of unsold maize, rice, and soya beans across the country is threatening the livelihoods of thousands of farmers and grain traders.
In a statement signed by the Chamber’s Chief Executive Officer, Mr. Anthony Kofi Tuo Morrison, CAG revealed that over 1.2 million metric tonnes of major staple crops are currently sitting idle in warehouses and farms due to weak market demand, policy inconsistencies, and import pressures.
The group has, therefore, urged government to take urgent measures to stabilise grain prices and protect the agricultural sector. Its key proposals include a *three-month suspension of rice imports, the **repeal of export restrictions on soya beans, and the *establishment of a national grain reserve to purchase and store excess produce.
Agriculture remains the backbone of Ghana’s rural economy, employing nearly 36 percent of the labour force and serving as the main source of income for millions of smallholder farmers. When grain prices fall or markets collapse, the ripple effect extends beyond farms to transporters, input dealers, and food-processing industries.
The Chamber’s warning, therefore, signals more than a short-term surplus — it highlights structural weaknesses in Ghana’s agricultural value chain, from poor post-harvest management and trade policies to the lack of processing capacity.
Analysts warn that if the issue is not addressed promptly, Ghana could experience not only farmer income losses but also reduced production in subsequent seasons, as many producers may abandon farming or scale down operations.
Contradictions in the Rice Agric Sector
Despite Ghana’s persistent dependence on rice imports, the country still struggles to absorb locally produced rice. CAG describes this as a “market paradox.” Ghana consumes approximately 1.9 million metric tonnes of rice annually but produces only about 900,000 metric tonnes, creating a supply gap of nearly one million tonnes.
Yet, much of the local harvest remains unsold due to cheaper imported brands, inconsistent import regulation, and weak consumer awareness of local rice varieties.
The Chamber also cited reports of expired and smuggled rice entering Ghana’s markets from neighbouring countries, further depressing prices and discouraging farmers. In regions such as Northern, Upper East, and Volta, local millers have reportedly scaled down operations because warehouses are filled with unpurchased stock.
The problem is not limited to rice. Ghana’s maize production currently stands at about 2.5 million metric tonnes, against an estimated annual demand of 3.3 million metric tonnes. Even so, significant volumes remain unsold due to reduced feed industry demand and low purchasing power among aggregators.
For soya beans, annual production fluctuates between 225,000 and 250,000 metric tonnes, though experts estimate Ghana’s production potential could reach 700,000 metric tonnes with proper investment.
According to the Chamber, farmers are facing falling prices and storage difficulties due largely to Legislative Instrument (L.I.) 2432, which restricts the export of raw soya beans. The policy, introduced in 2021 to encourage local value addition, has had unintended consequences.
“The law, though well-intentioned, has become counterproductive,” CAG stated. “Farm-gate prices have dropped from about GHS 650 to GHS 400 per bag, leaving large volumes of produce trapped in warehouses.”
The Chamber warns that the trend could drive many farmers out of production if not urgently addressed.
To tackle the crisis, CAG has outlined several short- and long-term interventions:
- Temporary Ban on Rice Imports: A three-month moratorium to allow the absorption of local rice stocks and boost local millers.
- Repeal or Review of L.I. 2432: To enable soya bean exporters to access regional markets and stabilise domestic prices.
- Strategic Grain Reserve Procurement Programme: Managed under the National Food Buffer Stock Company (NAFCO), this initiative would purchase surplus produce to prevent post-harvest losses and price collapse.
- Five-Year Rice Production Strategy: A medium-term plan to expand irrigation, mechanisation, and storage infrastructure.
- Support for Agro-Processing Industries: Strengthening local milling and feed-processing firms to create consistent demand for raw grains.
CAG emphasised that government intervention is critical not only for stabilising the current market but also for restoring confidence among farmers and investors in the agribusiness sector.
The grain crisis comes at a time when Ghana’s food inflation remains high — hovering around 24.5 percent as of the third quarter of 2025 — driven by transportation costs, currency depreciation, and market inefficiencies. A glut in local grain production, paradoxically, has not translated into lower food prices because of high logistics costs and limited processing capacity.
Experts say that if properly managed, Ghana’s surplus grain production could position the country as a regional food supplier, particularly to West African markets facing shortages due to climate shocks and conflicts.
However, without deliberate market coordination, these surpluses could lead to waste and declining farmer morale.
Farmers in the Northern Region, particularly in Tamale, Savelugu, and Yendi, have expressed frustration over low prices and lack of buyers. Some report that they are unable to repay loans taken to finance fertilizer and mechanisation costs during the last farming season.
A maize farmer in Yendi noted that buyers now offer “less than half” of last year’s price, forcing many to hold their produce in rented warehouses. Others have resorted to selling grain at a loss to cover debts.
The Chamber of Agribusiness Ghana has reiterated its commitment to working with the Ministry of Food and Agriculture, NAFCO, and other stakeholders to find a market-based solution to the crisis. It insists that protecting local farmers must remain a national priority to ensure long-term food security.
The group believes that a short-term import restriction, coupled with improved grain procurement and storage systems, could ease the immediate pressure while paving the way for sustainable agricultural reform.
Ghana’s grain glut underscores a persistent challenge in the country’s agricultural system: producing more food does not always guarantee better livelihoods for farmers. Without effective market linkages, supportive policy alignment, and strategic investment in value addition, surpluses can easily become crises.
The coming months will reveal whether government and stakeholders can transform this challenge into an opportunity to strengthen Ghana’s food systems and boost farmer confidence.
