Ghana’s Rice Revolution: Imports Plunge by 45%, Government Aims for Self-Sufficiency with  1 Million MT Local Production Target

Rice imports to Ghana witnessed a decline of approximately 45.34% between 2021 and 2023, as per data from the Ministry of Food and Agriculture. In 2021, total rice imports were estimated at 805,000 metric tons (MT). This figure decreased to 650,000 MT in 2022 and further to 440,000 MT in 2023.

Various industry stakeholders attribute this reduction to the rise in import taxes and the reversal of the benchmark value discount policy on selected imported products, including rice. Over the years, farmers have expressed concerns about the lack of buyers for harvested rice in warehouses across the country and market price disparities, mainly due to the influx of cheap smuggled foreign rice brands.

To compensate for the shortfall in national rice supply, the report suggests that Ghana must produce 1.0 million metric tons of rice locally to achieve self-sufficiency. This move could potentially save the nation approximately $500 million in annual import expenditure.

To promote local production, the government imposed a ban on cereal exports from September 2021 to September 2022, aiming to stabilize prices and ensure market availability of local rice. This decision followed Ghana’s annual import bill exceeding $10 billion, encompassing rice, fish, poultry, and palm oil.

According to Agriculture Research for Sustainable Development (CIRAD, 2007), Ghana’s rice self-sufficiency ratio declined from 38% in 1999 to 24% in 2006 but increased to about 43% in 2020. The report emphasizes the need for increased efforts to enhance the competitiveness of the local rice value chain for sustainable growth and economic transformation.

In 2017, the Government of Ghana launched its flagship policy, the Planting for Food and Jobs (PFJ), to modernize agriculture, improve production efficiency, and achieve food security and profitability for farmers. The second phase of the PFJ was launched in July 2023, incorporating information technology to address the shortcomings of the initial phase.

The PFJ aimed at significantly increasing agricultural productivity and implementing a value-addition strategy to boost agro-processing and develop stable markets. However, critics argue that the program faced challenges, leading to over 50% food inflation last year. In response, the Ministry transported food from rural areas to cities to alleviate the impact. The government plans to provide 34,682 metric tons of seeds to farmers in 2024.