The government is ramping up efforts to mitigate the crisis in response to the looming threat of food insecurity caused by the ongoing drought in the Northern and Middle Belts.
As part of these measures, authorities have mobilised funds, imposed a temporary ban on grain exports, and prioritised the importation of grains to stabilise food supplies.
Finance Minister Dr. Mohammed Amin Adam announced that the government has secured a $1 million insurance policy to safeguard smallholder farmers in the northern region from future droughts.
This policy is designed to provide a $5 million payout if a drought occurs, offering crucial financial protection to the affected farmers.
He said, “The government has purchased an insurance policy against future drought in the northern region.
We have purchased an insurance policy by which we are paying the premium of one million dollars, and the payout will be five million dollars when we experience such a drought, and this will cover smallholder farmers in the northern region.”
Minister for Food and Agriculture Bryan Acheampong defended the government’s decision to request a withdrawal of GHS 500 million from the contingency fund, explaining the intended use of the funds within the broader GHS 8.3 billion budget requirement.
The disbursed funds will be directed towards purchasing seeds and fertilisers, providing feed grants, facilitating cash transfers, and importing rice and maize.
Additionally, part of the allocation will support the poultry industry by securing necessary feed supplies.
“We have a commitment coming from the contingency fund of $500 million, so we’ll apportion it into these areas.
Not in equal proportions because some of the items are being imported, so whatever we get from the agreed budget, from the contingency fund, and from other allocations that the Ministry makes, we’ll apportion them to whatever we are dealing with.”
Chair of the Finance Committee of Parliament, Patrick Boamah, assured that the funds will be approved immediately once all release criteria are met, despite concerns raised by the Minority.