Global Rice News

Ghana and Rice: A Love Affair

Ghana and rice have a special bond that is as strong as Romeo and Juliet. Rice has become a staple in Ghanaian households, with Ghanaians enjoying it on every occasion, whether it’s a birthday, wedding, Christmas, or even a funeral. The convenience and versatility of rice make it an essential part of Ghanaian cuisine, and its popularity continues to rise.

According to IDH Sustainable Trade, Ghana consumes approximately 1.5 million metric tonnes of rice every year, which is equivalent to 54,000 40ft containers. However, about 60% of this rice is imported, amounting to around 950,000 metric tonnes. Ghana spent $552 million on rice importation in 2021, making it the 13th largest importer of rice globally. Rice was the third most imported product in the country, following cars and petroleum products.

The major rice importers for Ghana are Vietnam, Thailand, India, China, and Pakistan. These countries account for about 90% of Ghana’s rice imports. However, the Ministry of Food and Agriculture (MoFA) reports that domestic rice production is not meeting the country’s demand. Ghana currently produces only about 40% of the national rice demand, which is approximately 963,000 metric tons of paddy rice or 650,000 metric tons of milled rice.

The Deputy Minister of Agriculture in charge of crops, Yaw Frimpong Addo, attributes the challenges in increasing domestic rice production to the lack of quality standards, processing facilities, modern milling machines, adequate silos for paddy storage, and comprehensive quality testing procedures. These factors hinder the competitiveness of local rice production and contribute to the country’s reliance on rice imports.

Ghana’s vulnerability in the rice market is evident as a significant percentage of rice imports come from only three countries. Any disruptions to the supply of rice from these countries could have a severe impact on Ghana’s rice market and result in higher prices for consumers. Recent policies, such as India’s 20% duty on parboiled rice exports and Thailand’s water shortage affecting rice production, have already caused concerns of reduced rice supply and price increases.

To address these challenges, Ghana has implemented various policies and programs to boost rice production. The Planting for Food and Jobs (PFJ) initiative, launched in 2017, subsidizes fertilizer and rice seed costs to support farmers. The National Rice Development Strategy (NRDS) and the Ghana CARES program also aim to increase rice production and achieve self-sufficiency in rice by 2024.

Despite these efforts, achieving self-sufficiency in rice production remains a challenge. In the meantime, Ghana needs to diversify its rice import sources to reduce vulnerability and intensify efforts to promote locally-produced rice. The government and private traders should work together to ensure a stable and sustainable rice supply for Ghana’s rice-loving population.

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