MOFA is cash-strapped

Ministry of Food and Agriculture (MoFA) is cash-strapped as it has so far only received 39 percent of its budget for this year.

The Ministry of Finance and Economic Planning (MoFEP) has so far approved 39 per cent of GH¢ 745.83 million requested to enable MoFA finance its activities and projects in the 2013 financial year. This leaves a funding gap of GH¢ 452.75 million.

“As we speak, operational funds we have received are only for the first quarter, while the second quarter funds for 2013 are still awaiting approval from MoFEP,” a deputy director at MoFA, Mr. Daniel Ohemeng-Boateng told journalists at a forum in Accra.

“The Ministry is still in arrears of payment of monies meant for suppliers of fertilisers under the fertiliser and seed subsidy programme for last year. “Also, payments to contractors of irrigation projects are still outstanding for the year 2012,” he said.

Last year, the NPK fertilizer sold at GH¢76 out of which farmers paid GH¢39 while government offered GH¢37 as subsidy. While this year, the price of the same product has been pegged at GH¢71.5 and farmers are expected to pay GH¢51 with government absorbing GH¢20.50.

Last year, government expenditure on fertilizer subsidy stood at GH¢117million. However, farmers have complained of expensive seed and fertilizer prices in the country. Mr. Ohemeng-Boateng, explained that in spite of the limited funds the Ministry of Agriculture would continue with its mandate to implement programmes and projects in the Medium Term Agricultural Sector Investment Plan (METASIP).

He said the government would develop a national seed policy in conformity with regional seed and planting material policy under the ECOWA policy. In addition, the government would also co-ordinate the procurement and distribution of 180,000 metric tonnes of subsidised fertiliser to farmers.

In addition, web-based software for the smooth implementation and management of fertiliser and seed subsidy programme would be introduced. Furthermore, 4,127 tonnes of seed cotton and 9,472 tonnes of all lint would be produced.

Mr. Philip Abayori, who is the National President of the Farmers and Fishermen award winners called for the need for stakeholders to work collectively to sustain food supply in the country, adding, “the country need to work to reduce cost of production in the agricultural sector.”

The Agricultural Sector recorded the lowest growth rate of 1.3% compared with industry 7.0% and services 10.2%.

The service sector remains the largest with a share of 50.0% of GDP, followed by industry (27.3%) and Agriculture 22.0%.