The Deputy Minister for Food and Agriculture, John Dumelo, has revealed plans to curb food gluts as the government, through the Ghana Buffer Stock Company, has registered 45 Licensed Buying Companies (LBCs) to buy grains directly from farmers at guaranteed minimum prices.
The intervention is targeting surpluses of key staples such as rice, maize, and soya, while serving as a safe nest for farmers’ incomes from market fluctuations.
Mr Dumelo revealed this on Thursday, June 12, while responding to an urgent question from the Member of Parliament for Ketu North, Eric Edem Agbana.
The question focused on the government’s strategy for managing grain surpluses, which often result in post-harvest losses and unstable prices, leaving farmers at the mercy of buyers.
He explained that the government had allocated GH¢100 million in November 2025, with an additional GH¢200 million earmarked in the 2026 budget to strengthen the Ghana Buffer Stock Company to purchase, process, and store grains to cushion farmers against market shocks.
He is optimistic that the guaranteed minimum price arrangement will ensure farmers receive fair and stable returns regardless of market conditions. This, he added, is expected to boost production and enhance food security nationwide.
The Deputy Minister also said the government is working with the World Bank Group to renovate food storage warehouses across the country to expand storage capacity, reduce post-harvest losses, and help stabilise grain supply throughout the year.
Dumelo said the upgraded warehouses will serve as strategic reserves to manage excess production and prevent sharp price drops that usually disadvantage farmers, while also strengthening the country’s preparedness against food shortages.
He further indicated that the intervention forms part of a broader agricultural modernisation agenda aimed at integrating farmers into structured markets. By linking producers directly to licensed buyers, the policy seeks to reduce the influence of middlemen and improve transparency in grain trading.
Agbana welcomed the initiative but urged the government to ensure its timely implementation, noting that farmers in major grain-producing areas continue to suffer losses due to inadequate storage and price instability.
Dumelo assured Parliament that the Ministry for Food and Agriculture is committed to rolling out the programme without delay. He said the Ghana Buffer Stock Company has already begun engagements with the registered LBCs to operationalise the purchasing system.
Aside from strengthening food security, stabilising grain prices, and reducing reliance on imports, it will support farmers as a key driver of economic growth and rural development.
Source: GNA
