Business News of Monday, 29 September 2025

Source: thebftonline.com

Governemt releases GH¢100 million for NAFCO

The government has released GH¢100 million to the National Food Buffer Stock Company (NAFCO) to purchase surplus food crops from farmers in the wake of an anticipated bumper harvest this year, the Minister of Food and Agriculture, Mr Eric Opoku, has disclosed.

For months, farmer groups have appealed to the government to intervene by absorbing excess produce that would otherwise go unsold, citing the risks of post-harvest losses and low market prices.

The Minister, in an interview with journalists on the sidelines of a donation ceremony, said the new allocation would allow NAFCO to buy crops such as maize and rice directly from farmers, store them in prepared warehouses, and release them during emergencies, thus providing a safety net for farmers.

“This is the first time since the establishment of NAFCO that the government has provided such significant resources for surplus food purchases. It will not only reduce post-harvest losses but also guarantee food reserves to cushion the nation against future shortages,” Opoku said.

He explained that the intervention was part of deliberate policies to boost production, which was now yielding results.

“For the first time in the Ministry’s history, a team had toured the country’s irrigation sites, distributing improved seeds and fertilisers free of charge to farmers. Support was also extended to farmer associations, including peasant farmer groups, to enhance productivity.

“We have also encouraged farmers to organise themselves into community commodity-based cooperatives. Today, more than 65,000 cooperatives have been registered across the country, making it easier to provide them with education and support, so what we are witnessing is the fruit of these targeted investments,” the Minister noted.

Opoku revealed that a Price Determination Committee had already submitted proposals, and after consultations with the Association of Ghana Industries (AGI), prices for key crops would be announced to the public in due course.

The Minister assured farmers that every grain would be bought, “Even if the GH¢100 million allocated proves insufficient, His Excellency the President has given assurance that additional resources will be provided.”

He also commended the World Food Programme (WFP) for supporting the Ministry to rehabilitate and prepare warehouses nationwide for storage.

Beyond market stabilisation, the Minister stressed that the government remained committed to protecting food quality by joining the fight against illegal mining.

He warned that chemicals from such activities were already contaminating food crops in some areas, posing a health risk, adding that, “If the food we consume is polluted, we are shortening our lives.”

Opoku also underscored the importance of irrigation in sustaining Ghana’s Feed Ghana Programme, noting that while the country has about 1.9 million hectares of irrigable land, only 229,000 hectares were currently irrigated, while many constructed in the 1960s were operating at minimal capacity.

He said rehabilitation works were ongoing at several sites, including the Shama irrigation project, which was functioning at only 20 per cent capacity.

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