Minister for Finance, Dr Cassiel Ato Forson, has announced plans to introduce a policy requiring rice importers to purchase at least 50% of their intended import volumes from local farmers before they can obtain import permits. Under the proposed arrangement, importers seeking to bring 100,000 metric tonnes of rice into the country would have to provide evidence of purchasing 50,000 metric tonnes from local farmers before being granted permission to import.
Speaking at the Kwame Nkrumah University of Science and Technology (KNUST) during an engagement on the New Economy, He said the policy forms part of the government’s efforts to create a reliable market for locally produced rice, support farmers and reduce the country’s dependence on imported food.
He expressed concern that local rice farmers continue to struggle to find buyers despite producing rice for the domestic market. He questioned why farmers should complain about a lack of market when the government spends approximately GH₵4.5billion to GH₵5billion annually on the Free Senior High School (Free SHS) programme, with a significant portion going into feeding students.
According to the minister, about GH₵3.5 billion of the annual expenditure goes into feeding alone, making it necessary for government to ensure that locally produced food is given priority. He said government would introduce a direct procurement law to ensure that public funds spent on food procurement benefit Ghanaian farmers. Dr Forson further explained that the proposed import permit arrangement would allow rice importation to continue while ensuring that local producers also benefit from the market.
He said the government wants to introduce an approach that would make Ghana a pioneer in linking food imports to purchases from local producers. The Minister also pointed to the procurement of uniforms for military and police personnel as an example of how government spending could support local industries. He urged Ghanaians to patronise locally manufactured textiles and other products, arguing that increased demand for local goods would create jobs, strengthen domestic businesses and encourage farmers to expand production.
The Minister stressed that the initiative would go beyond policy announcements, indicating that government was taking steps to implement the measures.
He warned that importers and other businesses that fail to comply with the proposed requirements would face sanctions.
