India: Ban on rice exports is a wake-up call for Ghana to scale up rice production

Pundits have encouraged the government to begin to restrategize Ghana’s rice production to increase supply in response to domestic demand and improve export prospects.

The Chief Executive Officer of the Chamber of Agribusiness, Farmer Anthony Morrison, and AfCFTA Consultant, Dode Seidu are the latest to make this call.

Speaking to Kennedy Mornah on the Eye on Port program, they maintained that India’s Ban on the exportation of rice should serve as a wakeup call for Ghana to double up on her efforts to expand rice production.

According to the CEO of the Chamber of Agribusiness, Farmer Morrison, Ghana’s last policy strategy was developed in 2008, which is woefully inadequate for a sector that can attract a lot of economic fortune for the nation.

He said global events like India’s Ban are not cause for alarm, yet “must afford us the opportunity to enhance and make the necessary deliberate investments into what are our national priorities.”

The avid agriculture advocate intimated that not only is Ghana’s rice in demand abroad, but the nation has favorable climatic conditions that provide a comparative advantage.

“Ghana exports rice to South Korea, Japan, and the sub-region. In fact, Nigeria exports a lot of paddy rice from us. If you go to the Sogakope enclave, the Africa Tiger Group exports most of their rice to a factory in Benin where they use it for beer and other derivatives. We have a very fantastic climate. The humidity levels support rice production. If we intensify mechanization in Volta Region alone and adopt the right climate action.”

He acknowledged the efforts of the Alliance for a Green Revolution in Africa (AGRA), the Japan International Cooperation Agency (JICA), the West Africa Centre for Crop Improvement, the University of Ghana (WACCI), and other local and international organizations in support of Ghana’s rice industry.

Yet, he called for more collaboration with the government to streamline activities into one focused strategy.

Based on the findings of the last Economic Returns Report for Ghana On Food Security, the CEO of the Chamber of Agribusiness called on the government to align national policies to national priorities. He also said it is necessary for the government to exhibit genuine commitment to sector policies and strive to ensure harmonization of activities and programs under the focus strategy.

He criticized the government’s action to discontinue exemptions on agro-inputs which has spiked the cost of inputs, resulting in a trickledown effect on the cost of production of agricultural produce.

“The Tax Exemption Act of 2022 increased the cost of farm inputs. This mitigated against the activities of importers who otherwise, would have brought in much more inputs than they have brought in this year. Since January, together with all our stakeholders, we have been drumming home our concerns and it is only this month government has made its first comment on this.”

Trade Champion, Pan Africanist, and AfCFTA Consultant Dode Seidu said, that given India’s actions and other global trends, developing countries like Ghana must be quick to respond proactively.

“The implications may not be dire immediately but it depends on how we prepare. This is an agricultural product and you do not take a few weeks to become self-sufficient or have alternatives. Production takes time and a lot of resources and technical considerations,” he cautioned.

He revealed that such global trends naturally increase demand, therefore causing inflation for the product which has already begun in some parts of the world, and Ghana should find it wise to act now, and not suffer a miserable fate.

Mr. Seidu said expansion in capacities to produce such as seed multiplication programs, and irrigated rice production should be pursued aggressively.

He said support services to drive rice production like access to finance should be critically considered to ensure that cost does not become a disincentive for the rice production business.

“Banks and all other financial institutions should look at innovative ways to support the rice production industry especially commercial banks with high interest rates. The use of smart guarantees established by Ghana Incentive-Based Risk Sharing System (GIRSAL) to support the agricultural sector.”

The AfCFTA consultant said good causes like the Planting for Food and Jobs should be accelerated. He also argued that the country needs a new rice production strategy.