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Inadequate Storage Hampers Government’s Grain Purchase Efforts Despite GH¢300m Injection

Inadequate storage infrastructure is limiting NAFCO’s ability to purchase surplus grains despite government funding, worsening the rice glut, reducing farmer incomes, and highlighting urgent need for investment and private sector support.

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Limited and deteriorating storage infrastructure is undermining government efforts to procure and preserve surplus rice and grains, despite the release of GH¢300 million to support strategic food reserves.

The challenge has deepened the ongoing rice glut in key producing regions, where poor warehouse capacity has constrained the ability of the National Food Buffer Stock Company (NAFCO) to absorb excess output from farmers.

In an interview, NAFCO’s Deputy Chief Executive Officer, Osmond Amuah, described inadequate storage space as the most critical obstacle to effective grain off-take operations.

“The challenge remains storage. Over the years, investment in storage infrastructure has either declined or been non-existent. Many facilities are abandoned leaking, without windows or proper roofing,” he said.

According to him, increased agricultural output driven by government interventions has resulted in surplus produce on the market, but storage limitations continue to restrict NAFCO’s ability to respond effectively.

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“Even with the funds released for grain purchases, our warehouses are already full. There’s simply no space,” he added.

Mr. Amuah disclosed that although NAFCO’s total installed storage capacity nationwide is about 129,000 metric tonnes, only between 40,000 and 44,000 metric tonnes are currently usable due to the poor condition of facilities.

He further revealed that Ghana faces an estimated storage deficit of about 420,000 metric tonnes if it is to maintain adequate buffer stocks to safeguard food security.

“With annual grain consumption exceeding six to seven million metric tonnes, the country should ideally maintain reserves of between 10 and 30 percent to cushion against emergencies,” he explained.

The lack of reliable storage systems at the community level, he noted, is forcing many farmers to sell their produce immediately after harvest, often at lower prices.

To address the situation, Mr. Amuah said government and NAFCO have begun rehabilitating abandoned warehouses while expanding storage infrastructure nationwide.

He indicated that the World Food Programme (WFP) is supporting NAFCO with equipment valued at over $1 million, while a separate contract worth nearly $2 million has been awarded for the rehabilitation of a major warehouse in Tamale.

Additionally, NAFCO is refurbishing satellite warehouses across the country using internally generated funds.

Mr. Amuah stressed the importance of private sector participation in bridging the storage gap, noting that several private warehouse operators have submitted proposals to partner with NAFCO.

“We need stronger private sector involvement,” he said, adding that six private partners have already been engaged under a zonal system to support grain purchases in the Northern, Middle, and Southern sectors.

He also urged Ghanaians to prioritise locally produced rice to boost demand and support farmers.

“Consumer preferences must change. Imported rice is cheaper, and that is something we must address,” he said.

Mr. Amuah assured farmers that government remains committed to resolving the storage crisis through targeted investments in warehouse infrastructure, farmer service centres, mobile storage units, and policies aimed at promoting local food consumption.

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