Ghana Imposes Grain Export Ban to Avert Food Crisis

Ghana Imposes Grain Export Ban to Avert Food Crisis

September 03, 2024

In a decisive move to address an emerging food crisis, the Government of Ghana has imposed an immediate ban on the export of grains, including rice, corn, and soy. This ban, announced during a joint press briefing by the Ministry of Food and Agriculture (MOFA) and the Ministry of Finance on Monday, August 26, 2024, in Accra, aims to mitigate the impact of a severe drought that has led to widespread crop failure across several regions of the country. The ban is set to remain in effect until the situation normalizes, though it does not extend to processed grain products.

The affected regions, primarily located in Ghana's middle belt and northern areas, including Bono, Bono East, Oti, Northern, North-East, Savannah, Upper East, and Upper West, are responsible for approximately 62% of the nation's grain production. These regions have been particularly hard-hit by the drought, resulting in significant concerns over the availability of essential grains, potential spikes in food prices, and the economic well-being of farmers.

To alleviate the impact on farmers, the Minister of Food and Agriculture has urged those with grain stock to sell to the government through MOFA district directors, aggregators, or the directorate of crops. The government, recognizing the financial strain on farmers due to the export ban, has announced a plan to raise $500 million, including $155 million from the World Bank and other development partners and $160 million from the national budget. These funds will be used to boost input supplies, facilitate strategic food imports—largely relying on ECOWAS reserves—and compensate affected farmers with payments of GHS 1,000 per hectare.

The export ban is expected to last until January 2025, with the possibility of extensions if necessary. However, exporters may still seek permission MOFA. Exporters must submit a formal request to the relevant MOFA Directorate, detailing the type and quantity of grains to be exported. Permission is typically granted within a week. This temporary export ban reflects the government's commitment to safeguarding the nation's food security in the face of environmental challenges. By prioritizing the domestic market and offering financial support to farmers, the government aims to navigate the current crisis while laying the groundwork for long-term resilience in the agricultural sector.

Agriculture sector stakeholders, particularly those involved in grain exports, must take note of this new policy and its implications for their operations. As the country works to stabilize its grain supply, the coming months will be critical in determining the effectiveness of these measures and the overall impact on Ghana's food security.