Buffer stock shortfall leaves Ghana’s rice glut stranded as farmers await relief
Ghana’s efforts to stabilise its domestic food market are under strain after the National Food Buffer Stock Company (NAFCO) warned it requires at least GH¢770mn to purchase excess rice and grains from farmers, exposing a widening gap between policy ambition and fiscal capacity.
The state-backed agency, established to absorb surplus produce and maintain strategic reserves, says it is unable to meet current demand from farmers following a strong harvest season that has left warehouses brimming and market prices under pressure. The funding constraint risks undermining a central pillar of the government’s agricultural support framework, designed to guarantee a ready market and protect rural incomes.
Officials indicate that while an initial GH¢100mn has been released, with a further GH¢200mn provisioned in the 2026 budget, disbursements have lagged. The shortfall has left thousands of tonnes of locally produced rice unsold, raising concerns over post-harvest losses and liquidity challenges among smallholder farmers.
The development also casts doubt on the effective implementation of local procurement policies tied to flagship social programmes such as Free Senior High School (Free SHS), where domestically grown rice is expected to play a central role in feeding schemes. Industry participants say imported alternatives continue to dominate supply chains, reflecting persistent structural bottlenecks in aggregation, financing and distribution.
Analysts warn that without swift intervention, the current glut could erode farmer confidence ahead of subsequent planting seasons, with broader implications for food security and import substitution goals. The situation highlights the delicate balance between production incentives and state purchasing power in an economy navigating tight fiscal conditions.
For policymakers, the challenge now is less about boosting output and more about ensuring the financial mechanisms exist to sustain the market they have helped create.
