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NewsGrain export ban sparks ‘fear’ among peasant farmers over potential low prices

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Grain export ban sparks ‘fear’ among peasant farmers over potential low prices

The government’s recent decision to impose a ban on grain exports has triggered concerns among peasant farmers, who fear that the move could lead to a drastic drop in prices for their produce. 

The ban, instituted in response to a severe drought affecting the Northern regions, was announced by the Minister of Agriculture during a press briefing in Accra on 26 August 2024.

The minister explained that the directive, which takes immediate effect, is aimed at ensuring that sufficient crops are available for the domestic market during this challenging period. 

However, the Peasant Farmers Association has expressed dissatisfaction with the decision, arguing that the government has not implemented adequate measures to protect farmers from the risk of selling their produce at low prices.

President of the Peasant Farmers Association, Bismark Owusu Nortey, voiced his concerns during a media engagement, criticising the government’s approach as lacking inclusivity. 

“If you are announcing a ban, the ideal thing is to put in place local measures that will insulate the farmers from any possible low prices,” he stated.

Nortey further emphasised the need for farmers, as key stakeholders in the agricultural sector, to be involved in the decision-making process. 

“The first one has to do with the government’s resolve to ban the export of grains. I think that this particular approach – is an approach that was not inclusive.

They did not take on board the views, the concerns, and the possible challenges that this might have on farmers,” he added.

The drought in the Northern regions, which typically receive peak rainfall from June to September, has left 435,872 farmers across 871,745 hectares grappling with significant crop failures.

Key crops such as maize, rice, and yam have been particularly hard hit, resulting in estimated losses of GH¢3.5 billion and a potential revenue loss of GH¢10.4 billion. 

The affected area, responsible for 62% of Ghana’s annual grain production, now faces the risk of losing 1.8 million hectares of land.

In response to the crisis, the government has announced plans to raise $500 million, with a portion of the funds earmarked to compensate farmers for their losses. As part of the relief efforts, each affected farmer is set to receive GH¢1,000 ($64) per hectare to help alleviate the financial impact of the drought.

The Peasant Farmers Association continues to call for more comprehensive measures to ensure that farmers are not left vulnerable to market fluctuations, especially in the wake of the export ban. 

The association urges the government to engage with farmers and other stakeholders to develop sustainable solutions that address the challenges posed by the current agricultural crisis.

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