National Food Buffer Stock Company has disclosed that it requires at least GH¢770 million to clear a growing glut of locally produced rice, even as procurement continues with an initial GH¢100 million released by government, exposing a widening funding gap that is leaving farmers stranded with unsold produce.
The situation, which has been building since the 2025 harvest season, reflects a classic supply and demand imbalance. Farmers across key rice-producing zones have increased output, but the market has failed to absorb the surplus at the same pace. As a result, large volumes of rice remain locked in storage, with producers struggling to sell and recover their investment.
According to NAFCO officials, the GH¢100 million allocated in 2025 was only intended as a starting intervention and is still being used to purchase grains across the country. “The buying is still ongoing,” a senior official explained, noting that procurement teams remain active on the ground, acquiring rice from farmers through licensed aggregators.
However, the scale of the glut has far exceeded initial expectations. Authorities had earlier projected that significantly more funds would be required to effectively mop up the surplus. “We needed not less than GH¢770 million to mop up the surplus,” the official said, underscoring the magnitude of the challenge.
The funding shortfall is already having real consequences. Farmers and rice millers have reported being unable to sell their produce months after harvest, with some claiming they have not sold even a single bag despite engagements with authorities. This has triggered concerns about financial losses, rising storage costs, and potential spoilage, particularly for smallholder farmers who depend on timely sales for survival.
The issue has also sparked controversy within the agricultural sector. Some industry players have alleged that the buffer stock system is not fully prioritising locally produced rice, raising questions about whether imported rice is still finding its way into institutional supply chains. NAFCO has strongly rejected these claims, insisting that all purchases under the programme are sourced from Ghanaian farmers.
Beyond the immediate dispute, the crisis points to deeper structural weaknesses in Ghana’s agricultural value chain. While production has improved due to government support programmes and irrigation schemes, market access and post-harvest management have not kept pace. The result is a recurring cycle where increased output leads not to higher incomes, but to oversupply and falling prices.
The government had earlier directed that locally produced rice be prioritised for programmes such as Free Senior High School and the School Feeding Programme, in an effort to create a stable domestic market. While this policy remains in place, implementation challenges and funding constraints appear to be limiting its impact.
Compounding the problem is the delay in releasing additional funds. An extra GH¢200 million was announced in the 2026 budget to support procurement, but NAFCO officials say the amount has yet to be disbursed. “We are waiting for it,” the agency noted, highlighting the urgency of financial intervention.
The implications extend beyond farmers. A prolonged glut could discourage future production, undermining Ghana’s efforts to achieve food security and reduce dependence on imports. It could also destabilise rural economies, where agriculture remains a primary source of income.
At the same time, the crisis presents an opportunity for reform. Experts argue that improving storage infrastructure, expanding processing capacity, and strengthening distribution networks could help absorb excess production more effectively. There is also growing recognition of the need for better data and planning to align production levels with market demand.
NAFCO, which was established to stabilise food prices and provide a ready market for farmers, now finds itself at the centre of this challenge. Its ability to respond will depend largely on whether it can secure the funding required to scale up procurement and whether broader policy measures can address the underlying inefficiencies in the system.
For now, the message from the ground is clear: production has outpaced purchasing power. Until that gap is closed, thousands of farmers will remain stuck with unsold rice, and a policy designed to support them risks falling short of its intended impact.
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