Business News Thu, 9 Nov 2017

Government launches Warehouse and Receipt System to boost access to credit for farmers

Government has launched the National Warehouse and Receipt System to boost creditworthiness of farmers and to give immense growth to the agriculture sector in the country.

Some of the biggest constraints facing farmers in Ghana have been the difficulty in accessing credits and markets as well as issues of post harvest losses from lack of storage facilities.

A well functioning Warehousing and Receipt System is expected to help improve the situation and improve business for small-scale farmers.

Acting Chief Executive Officer of the National Food and Buffer Stock Company, NAFCO, Abdul Hanan Wahab said the Warehousing and Receipt System provides effective support for farmers when seeking funds from financial institutions.

He said with this Warehousing System, the farmer could choose to bring his/her goods, take a receipt and use it for a loan from any bank; or store his/her produce until a later date for sale.


He further noted that the system would also provide a ready market for farmers and hence help cut out the challenges with middlemen in the sale of farmers produce.

According to the deputy minister for trade and industry, Ahomkah Lindsay the system will effectively support the Ghana Commodity Exchange by providing an avenue for storage of produce to be traded both locally and internationally.

On his part, the Swiss ambassador to Ghana, Markus Dutly said the success of the project would contribute greatly to the nation’s attempt to diversify the economy.

The Peasant Farmers Association welcomed the move but stressed the need for full corporation from the financial institutions for the programme to achieve its intended purpose.

Source: Myjoyonline.com