The economy spent over GH¢6.8billion (equivalent to US$560million at current market rates) importing rice, a grain that can be produced locally, last year.
While total rice consumption stood at 1.4 million metric tonnes in 2022,
imports valued at US$560 million accounted for 800,000 metric tonnes (mt) of
the consumption figure, with domestic production catering for the remaining
demand – according to data from IDH Sustainable Trade, a foundation
headquartered in The Netherlands.
Similarly, according to the Ministry of Food and Agriculture, between 2010 and
2020 the country’s rice imports hit a staggering US$8billion. This, in addition
to imports of other food items that can be produced locally, has been a major
source of concern for stakeholders.
This high dependence on imports of food staples like rice, despite vast
untapped domestic potential, however, comes with ramifications for the cedi and
local job prospects, warns Country Director for IDH, Robert Asugre.
Just like many other industry watchers and economists, Mr. Asugre is of the
view that rising consumption of the grain presents huge opportunities for real
value creation and jobs if the right investments and policies on local
production are prioritised.
“The rice value chain in Ghana, when supported, will lead to increased
commercialisation and improved production of high quality and quantities that
are competitive,” he said. This, he added, will help to reduce the impact of
rice imports on the economy.
Mr. Asugre spoke on the sidelines of the National Rice Fair held in Walewale in
the North-East Region, and called for greater commitments from government and
the private sector to ease the import burden on the economy of rice and other
foodstuffs which can be produced locally.
Buttressing his point, he said northern parts of the country alone, for
instance, have potential to meet the rice needs of Ghanaians if the right
investments into infrastructure – including irrigation systems, milling
machines and storage facilities as well as suitable policies – can be put in
place.
He added that the result of such investments will have far-reaching impacts on
the economy, as it will retain value within as well as creating sustainable
jobs for the country’s teeming youth.
Rice has become the second staple food consumed in the country after maize,
with production increasing from 48,800mt in 1970 to 925,000mt in 2019; growing
at an average annual rate of 9 percent, according to the Food and Agriculture
Ministry.
Though the figures depict high potential for growth in local production,
challenges including access to finance, skilled labour, shortage of combine
harvesters, milling machines and storage infrastructure continuously threaten
the crop’s production.
Though one of the first countries in the sub-region to launch the National Rice
Development Strategy, challenges still persist – with Ghana having already
missed out on its local rice production agenda as part of the Coalition for
African Rice Development policy.
That strategy, which was unveilled in May 2008 as the National Rice Development
Strategy for the period 2009-2018, aimed at increasing domestic production up
to 70 percent and promoting consumption through quality improvement, targetting
both local and international markets.
The strategy ended almost four years ago, albeit rather achieving an opposite
figure of 70 percent imports with the Ghanaian consuming public still largely
dependent on imported rice brands.
Source:
B&FT