A development economist, Dr Frank Bannor, has attributed the growing stock of unsold locally produced rice to what he describes as conflicting economic policies that are weakening demand for domestic products while making imported alternatives more competitive.
Dr Bannor, a Senior Research Fellow at the Institute of Economic Research and Public Policy (IERPP), said the difficulties facing peasant rice farmers should not be viewed solely as an agricultural-sector problem but as a consequence of broader macroeconomic decisions.
His comments follow concerns from peasant farmers across the country over large quantities of rice reportedly sitting in warehouses without buyers, threatening the livelihoods of producers who invested heavily in cultivation.
In a Facebook post, Dr Bannor argued that efforts to contain inflation through tighter demand management and reduced government spending could have unintended consequences for local businesses and farmers.
He questioned how domestic producers could sustain their operations when demand was being constrained while imported goods remained relatively cheaper.
According to him, the situation creates a difficult environment for local rice producers, who face production costs at home while competing against imported rice whose prices benefit from prevailing exchange-rate conditions.
The economist said households facing financial pressures would naturally gravitate towards cheaper products, leaving locally produced rice struggling to compete on the market.
The development has raised concerns about the sustainability of Ghana’s push for increased domestic food production, particularly as farmers who responded to calls to produce more food now risk being left with unsold stocks.
Some farmers are consequently facing difficulties recovering their investments and servicing debts incurred during production.
The Peasant Farmers Association has called for urgent intervention, including the recapitalisation of the National Food Buffer Stock Company (NAFCO) to enable it to purchase surplus rice from farmers.
Dr Bannor, however, suggested that while government procurement could provide immediate relief, such an intervention would not address the underlying challenges unless broader economic policies were aligned with the interests of domestic producers.
He argued that fiscal, monetary and exchange-rate policies needed to create stronger incentives for local production and consumption rather than allowing imported alternatives to gain a price advantage.
The situation, he said, highlights the need for policymakers to consider the impact of macroeconomic stabilisation measures on businesses and farmers whose survival depends on domestic demand.
For rice farmers, the immediate concern remains finding buyers for their produce, but Dr Bannor’s analysis points to a broader policy question: how Ghana can achieve macroeconomic stability while ensuring that local producers are able to compete and benefit from the market.
