Ghana’s grain sector faces collapse as imports and smuggling cripple farmers

Ghana’s grain industry is sliding into crisis, with over 100,000 metric tonnes of maize and rice from the 2024 harvest still unsold. Farmers are drowning in debt, while local processors struggle to survive.

The Chamber of Agribusiness Ghana (CAG) warns that cheap imports and rampant smuggling of poor-quality grains have pushed many farmers to sell below production cost.

With the 2025 harvest season around the corner, the Chamber fears the problem could deepen, wiping out livelihoods and threatening national food security.

Smuggled maize and rice—untaxed and unchecked—are flooding local markets at artificially low prices.

CAG cautions that if government fails to act, entire subsectors of the rice and maize industry could collapse. Already, some mills are running far below capacity, while others have shut down.

“This not only jeopardises farmer incomes but also weakens the domestic value chain, making Ghana increasingly dependent on foreign imports and eroding food sovereignty,” the Chamber said.

CAG also raised alarm over alleged collusion between smuggling cartels and corrupt border officials, stressing that the state is losing critical revenue through tax evasion.

To avert disaster, the Chamber is calling for urgent policy measures.

These include tighter border controls, guaranteed minimum prices for farmers, and directives for institutions like the School Feeding Programme, Armed Forces, and Prisons Service to buy from local producers.

It also urged financial support for millers to purchase grains at harvest and long-term investments in storage, irrigation, rural roads, and cold chain systems.

CAG is demanding an emergency dialogue between government, private players, and farmer groups before the new harvest arrives.

“Investing in local rice and maize is investing in Ghana’s economic independence, jobs, and food sovereignty. The time to act is now,” it stressed.

Source: Myjoyonline

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