Food is expensive despite PFJ programme – IEA

Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye has lamented the high price of food even with the government’s ‘Planting for Food and Jobs’ (PFJ) programme.

Despite government’s assertion that it has achieved adequate food supply through the PFJ, Dr Kwakye believes food prices have made it difficult for many people to afford decent meals.

Addressing the press on Tuesday, the IEA research director said food inflation constitutes 43 percent of the total cost for all items on the Consumer Price Index (CPI).

“The reality on the ground is that food prices are still expensive despite the Planting for Food and Jobs programme.. If you go into the CPI Basket alone, food prices command a weight of 43 percent of the whole basket which contains about 260 items,” he said at a post-budget analysis programme organised by the IEA.

He added that most households in the country commit a chunk of their income to food.

“The figures mean that on average Ghanaians spend 43 percent on food in a month, then the rest goes into all other things like medicals, entertainment etc. If you go to advanced countries, they don’t spend more than 5 percent on food.”

Dr Kwakye stressed that Ghana has not yet achieved food security, since many farming areas in the country depend on rain even though the government has promised to build irrigation dams for farmers.

Linking the agriculture sector to manufacturing, he maintained that low productivity has contributed to the lack of supply for raw materials to industry.