Over-liberalisation, the bane of local rice industry – GRIB

The over liberalization of trade in Ghana has been identified as one cause of the less productivity in the rice industry in the country. It is believed that if Ghana should become self-sufficient in rice production then it behooves the government to take steps to reverse this trend. Executive Secretary of the Ghana Rice Inter-Professional Body (GRIB), Mr. Fidelis Avogo, made this remark on Thursday.

“Although GRIB is not advocating a blanket trade blackout, it is restating that, rice being a strategic crop needs some enabling conditions to strive and grow from its infant state,” he said.

Addressing the Fourth General Assembly of GRIB, Mr Avogo, said another problem militating against the growth of the rice industry in Ghana is the unstable market prices, adding, “More often, due to the over liberalized economy, traders buy inputs from wherever and price them differently”. He said consumption of rice had increased sharply, doubling to 14.5 kilos per capita since the 1990s. In 2006, total rice consumption amounted to between 450,000 and 750,000 tons.

Mr Avogo said a survey in 2006 estimated an urban annual consumption of 38 kilos per capita, while rural consumption stood at nine kilos per capita. The study also revealed that two regions, Greater Accra and Ashanti, were the largest consumers.

“Despite the existing potential for increasing national rice production as a result of abundant suitable ecologies, Ghana imports over two-thirds of its rice requirements which translate into 500 million dollars,” he said. Mr Avogo urged government to establish a Rice Development Fund to help farmers in land development, which was capital intensive.

He lauded rice sector operators for their contribution towards food security and called on them to take advantage of technology to improve productivity. “Rice among other cereals is attracting premium prices. This is a rare opportunity to the farmers that you must exploit to the full.”

Senior Project Officer of Agence Française De Development (AFD) Thomas De Gubernatis who was the Guest of Honour at the opening session of the Fourth General Assembly promised his Agency’s commitment to work with rice growers in Ghana to ensure food security in the country. He said the AFD “is here to enter into a meaningful and long-term partnership with GRIB”.

GRIB is an umbrella organization of rice stakeholders and is aimed at identifying constraints, promoting market, price negotiations and profit sharing among stakeholders. It also proposes and lobbies for rice policies with relevant agencies and government.

Alhaji Naa Von Salifu, Zonal Coordinator, Northern Centre, mentioned policy sustainability, lack of good seeds, unreliable weather and high interest rates as some factors hampering the growth of the industry. He said GRIB, as a non-partisan organization supports government policies that favour farmers.

We will only support policies, not politicians”, he explained asking the new administration to work assiduously with Civil Servants to formulate policies that would ensure food security in Ghana.

Alhaji Von Salifu believes the government can, for instance take a look at interest rate sin Ghana which he thinks are too high for farmers. Comparing Ghana’s situation with those of Gambia,7% and Nigeria,less than 12% Alhaji Salifu believes something can be done to make credit affordable for the Ghanaian farmer also.

He criticized the previous NPP government of lacking political will, having implemented their Rice Levy policy for only two weeks and scrapping it. Mr Ralph Mends-Oduro, out-going President of GRIB, called on the Ministry of Food and Agriculture to show interest in the activities of the group and urged members to work in unity to advance their cause. He appealed to the new administration to lend its support to rice growers in the country, not only financially but also morally to encourage them to persevere in what they do. “We are not necessarily looking for financial support from government but the moral support is very necessary”, he noted.