The Finance Minister during the Mahama administration, Seth Terkper, has disclosed that the current exorbitant food prices in the market could have been even higher if not for the rains.
During an interview on Morning Starr with Francis Abban, Terkper mentioned that the favorable weather conditions the country experienced helped alleviate the severe impact on the food supply.
“The current situation you’re talking about could have been worse if the rains had not been good. Of course, we know that if the rains fail because of heat and all that or drought. Any year the food [supply] has not been good, it has been tough.
“The May season, for instance, it’s always been tough. It’s only that the economy has been robust to support it,” he observed.
Terkper emphasized the importance of not viewing food prices in isolation but considering other crucial factors affecting them, such as the cost of fertilizer.
He elaborated that one strategy to tackle the increasing food prices was to enhance the value of exports, which could be complemented by a robust export support system.
“Exim Bank in our model was to look outward where Cocobod looks outward for farmers, only this time, it is going to look outward for those exporting already but need export finance. Those who are going to be adding value, so you need to get a loan in cedis and you export and then it is aggregated.”
Although data from the Ghana Statistical Service indicates that food inflation is at its lowest point in 13 months, these seemingly positive figures do not accurately portray the challenging economic circumstances.