By Collins Sarkodieh 
The National Food Buffer Stock Company (NAFCO) has officially requested GH¢770 million to purchase surplus rice and grains from local farmers. This funding is critical to prevent post-harvest losses and ensure that the excess produce currently held by farmers across the country is fully absorbed into the national food reserve.
Ghana’s agricultural sector is currently facing a “good problem”: a massive surplus of locally grown rice. However, without the financial liquidly to buy this stock, farmers are left with unsold produce while the market remains vulnerable to price fluctuations. NAFCO spokesperson Emmanuel Arthur recently clarified that the initial GH¢100 million provided by the government in 2025 was simply insufficient to meet the scale of the current harvest.
By securing this GH¢770 million, NAFCO aims to stabilize the market, support the Free Senior High School (SHS) program with local grains, and significantly reduce Ghana’s dependence on imported rice. The move is not just about buying food; it is about protecting the livelihoods of thousands of Ghanaian farmers who have answered the call to increase local production.
Why is there a funding gap for purchasing local rice?
The current funding gap exists because the initial GH¢100 million released by the government only covers a fraction of the total surplus produced by farmers. NAFCO had originally estimated that GH¢770 million was required to fully clear the market of excess grains, but fiscal constraints led to a staggered release of funds.
While the government has indicated an additional GH¢200 million will be allocated in the 2026 budget, NAFCO is still awaiting these funds. This delay has created a bottleneck where farmers have the product ready, but the state-mandated buyer NAFCO lacks the immediate cash flow to complete the transaction.
This situation highlights the disconnect between production success and logistical financing. As farmers increase their yields based on government directives, the financial machinery must move at the same pace to ensure that “bumper harvests” do not turn into “economic burdens” for rural households.
How does the rice surplus affect Ghanaian farmers?
The inability to sell surplus rice directly impacts the income of farmers, making it difficult for them to pay off loans and reinvest in the next planting season. Many farmers have expressed frustration, noting that large volumes of high-quality produce are currently sitting in storage without a clear market path.
Beyond just the lack of cash, the surplus creates a storage crisis. Local rice, if not stored under specific conditions provided by NAFCO warehouses, is susceptible to pests and spoilage. When the buffer stock company cannot buy the rice, farmers are often forced to sell to middlemen at a loss or watch their hard work rot.
Furthermore, the delay in government purchase affects the morale of the agricultural workforce. Farmers who were encouraged to grow local rice for the Free SHS program feel let down when they see schools still utilizing imported alternatives while local bags remain unsold.
Is the Free SHS program still using imported rice?
Reports from several farming communities suggest that some Senior High Schools are still being supplied with imported rice despite a clear directive to prioritize local produce. Farmers have accused NAFCO of failing to fully implement the directive originally championed to boost domestic food security.
NAFCO’s role is to act as the bridge between the farm gate and the school kitchen. When NAFCO is underfunded, the supply chain breaks, and schools often revert to the most readily available stock—which, due to long-standing trade routes, is frequently imported rice.
The government’s goal was to use the Free SHS program as a guaranteed market for local farmers. If this policy is fully realized, it would create a self-sustaining cycle where government spending on education simultaneously fuels the growth of the Ghanaian agricultural industry.
Factual Insights into Ghana’s Rice and Grain Market:
- Total Funding Required: NAFCO requires a minimum of GH¢770 million to fully clear the current surplus of grains held by farmers across the country.
- Initial Government Release: The government released an initial GH¢100 million in 2025, which NAFCO spokesperson Emmanuel Arthur described as inadequate for the task.
- 2026 Budget Outlook: An additional GH¢200 million has been earmarked in the 2026 national budget, though these funds have not yet reached NAFCO.
- Post-Harvest Losses: Estimates suggest that without state intervention, a significant percentage of local rice could be lost to spoilage due to inadequate private storage.
- Import Substitution: Ghana spends hundreds of millions of dollars annually on rice imports; successful NAFCO intervention could retain that wealth within the local economy.
- Policy Directives: There is an existing government mandate for NAFCO to supply local rice to the Free Senior High School program to support domestic production.
- Farmer Complaints: Farmers have publicly called for the government to honor its commitment to buy local, citing a struggle to find alternative buyers.
What is the government’s plan to resolve the NAFCO crisis?
The government plans to address the funding shortfall by releasing additional tranches of money through the 2026 national budget. Government officials have promised to provide the GH¢200 million indicated in the current fiscal plan to help NAFCO begin absorbing the backlog of produce.
However, the “wait and see” approach is risky for farmers who need liquidity now. The government is under increasing pressure to fast-track these payments to prevent a total collapse of farmer confidence in the local rice initiative.
Long-term, the plan involves strengthening NAFCO’s ability to manage “excess” production by improving its warehouse systems and ensuring that the demand from state institutions, like the Ghana Education Service, is strictly met with local grain supplies.
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Can Ghana achieve rice self-sufficiency through NAFCO?
Ghana can achieve rice self-sufficiency if NAFCO is properly resourced to act as a reliable buyer of last resort, giving farmers the confidence to expand their operations. Self-sufficiency is less about a lack of land or skill and more about the stability of the market and the availability of buyers.
When NAFCO has the GH¢770 million it needs, it can set a price floor that protects farmers from exploitation. This stability encourages private investment in rice mills and processing plants, which further improves the quality of local rice to compete with imported brands.
The transition to self-sufficiency requires a consistent policy where local rice is not just a “backup” option but the primary choice for every state-funded meal. The current surplus is proof that Ghanaian farmers can produce the food; now the financial systems must prove they can support the harvest.
What should be the immediate priority for the Ministry of Food and Agriculture?
The immediate priority must be the swift release of the promised GH¢200 million to NAFCO to begin purchasing the most at-risk stocks from farmers. Delaying this further will only increase the pressure on the government and damage the agricultural sector’s long-term growth.
Additionally, a strict audit of the food supplies in Senior High Schools is necessary to ensure the “local first” directive is being obeyed. If schools are found to be bypassing local rice for imports, it undermines the entire economic strategy of the Ministry.
Finally, there needs to be better communication between NAFCO and the farming unions. Clear timelines on when purchases will be made can help farmers plan their finances and storage more effectively, reducing the panic and frustration currently seen in the industry.
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