The Peasant Farmers Association of Ghana (PFAG) has sounded the alarm over growing financial distress among local rice farmers, warning that inadequate funding for the National Food Buffer Stock Company (NAFCO) has left large volumes of unsold rice on the market — creating a glut and threatening the future of domestic rice production.
According to PFAG Acting Executive Director, Bismark Nortey, NAFCO has received less than 10% of the funding it requested to purchase surplus rice from farmers this season.
“There are still rice farmers struggling to find buyers because NAFCO doesn’t have the financial capacity to absorb all the rice in the system,” Nortey said at a press briefing in Accra.
📢 GET A DETAILED ARTICLES + JOBS
Join ASJ's WhatsApp Channel and never miss a post or opportunity.
📲 Join ASJ Channel Now
Rice Glut Worsens as Farmers Cut Prices Below Cost
The lack of funds has created a nationwide rice glut, forcing many farmers to sell below production costs, resulting in significant financial losses.
Nortey cautioned that if the situation persists, many farmers could abandon rice cultivation altogether during the next planting season.
“If this situation continues, many farmers will stop producing rice because they know their investments could go to waste,” he warned.
The PFAG believes the issue, if not addressed, could undermine Ghana’s progress toward rice self-sufficiency and jeopardize national food security — a key pillar of the government’s agricultural agenda.
Minimum Farmgate Prices Not Enough Without Funding
To cushion farmers, the government recently introduced minimum guaranteed farmgate prices for key staples — including a GH¢625 purchase price for a 50kg bag of rice.
However, Nortey noted that the initiative’s impact remains limited due to delays in NAFCO’s disbursements and inconsistent policy implementation.
“Guaranteed prices are only meaningful when NAFCO has the resources to buy. Without adequate funding, farmers cannot rely on the market,” he explained.
PFAG Calls for Broader Agricultural Policy Reforms
Beyond immediate relief, the PFAG is calling for comprehensive policy reforms to strengthen Ghana’s rice sector.
The association’s proposals include:
-
Targeted subsidies for fertilizers and inputs to reduce production costs.
-
Seed voucher programs to support smallholder access to quality seeds.
-
Improved extension services and market linkages for rice producers.
According to PFAG, these interventions are essential to ensure that Ghana’s rice industry remains competitive, sustainable, and profitable in the long term.
Broader Economic Implications
The ongoing rice glut highlights the fragile state of Ghana’s agricultural financing ecosystem.
Analysts warn that chronic underfunding of NAFCO — coupled with rising input costs and weak post-harvest systems — could erode recent gains in food production.
A continuation of the current trend could also increase Ghana’s dependence on imported rice, putting additional pressure on the country’s foreign exchange reserves and trade balance.
PFAG’s Final Warning
Without swift intervention, PFAG warns, Ghana risks losing momentum in its drive toward rice self-sufficiency, while thousands of smallholder farmers could face financial ruin.
“The rice sector has potential, but potential alone doesn’t sustain livelihoods,” Nortey concluded.
“We need strong financial commitment and coordination across institutions to secure Ghana’s food
Source: Accra Street Journal
Last Updated on March 9, 2026 by Samuel Kwame Boadu
Disclaimer: Some content on Accra Street Journal may be aggregated, summarized, or edited from third-party sources for informational purposes. Images and media are used under fair use or royalty-free licenses. Accra Street Journal is a subsidiary of SamBoad Publishing Hub under SamBoad Business Group Ltd, registered in Ghana since 2014.
For concerns or inquiries, please visit our Privacy Policy or Contact Page.
Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
