Ghana’s Cabinet has approved a significant financial package for the National Food Buffer Stock Company (NAFCO) to mop up surplus produce from local farmers amid rising fears of a potential food glut and falling commodity prices.
This was announced by Majority Leader Mahama Ayariga which marks a major fiscal intervention aimed at stabilising agricultural markets, protecting farm incomes, and curbing food inflation in the short term.
Mr. Ayariga said the government’s decision follows increasing concern from lawmakers and agricultural stakeholders about the impact of oversupply, especially of staples like maize and rice on farmers’ earnings and rural livelihoods.
“Funds have been approved to empower the Ghana Buffer Stock to purchase excess grains and other farm produce, ensuring that farmers are supported and food reserves are strengthened,” he said.
The policy direction comes after Nureedin Mohammed, Member of Parliament for Nalerigu-Gambaga, called for an urgent briefing from the Minister of Food and Agriculture on steps being taken to prevent a market glut and mitigate the risk of widespread post-harvest losses.
Economists say the decision signals a market-stabilisation strategy that could ease pressure on food prices and help the government manage headline inflation, which has been partly driven by fluctuating food prices in recent months.
By enabling NAFCO to purchase and store surplus maize and rice including carry-over stocks from last season, the government aims to balance supply and demand within the domestic food market.
This is expected to help smooth price volatility, particularly in rural trading centres where sharp price drops typically follow bumper harvests.
The intervention is both an economic and social safeguard, it preserves farmers’ income streams while supporting the broader objective of price stability and food security.
The funding approval is also expected to inject liquidity into rural economies by providing immediate cash flow to farmers and aggregators who otherwise struggle to find buyers during peak harvest periods.
Agribusiness players have lauded the measure, describing it as a lifeline for the post-harvest value chain and a step toward more structured grain market management.
Farmer cooperatives and advocacy groups say this will help sustain the momentum of Ghana’s ongoing agricultural transformation, especially under the government’s Planting for Food and Jobs initiative.
NAFCO’s expanded role will strengthen its mandate as a buffer against supply shocks, allowing it to stockpile food for use in school feeding programmes, emergency relief, and price stabilisation schemes.
Beyond immediate relief, the consistent funding for NAFCO could encourage private-sector participation in warehousing, logistics, and agro-processing, deepening linkages across Ghana’s agribusiness value chain.
