Business News of Sunday, 20 October 2024

Source: thebftonline.com

Drought conditions in northern zone hit grains sector hardest

Drought conditions has affected grains sector Drought conditions has affected grains sector

Dry spells and drought conditions have affected 1.8 million hectares of agricultural land in the country, resulting in crop revenue losses amounting to some GH¢22.2billion for 2023 and 2024.

Data from the Ghana Grains Council (GGC) suggest the Northern and Savannah Regions – which are responsible for a significant portion of the country’s maize, millet, sorghum and rice – were hit hardest.

Maize yields fell by 35 percent and rice production by 25 percent, with millet and sorghum yields dropping by some 20 percent this year.

The situation’s gravity cannot be downplayed, especially when we consider the fact that maize alone accounts for half of the country’s total cereal production – with over two million smallholder farmers depending on corn for their livelihoods.

Despite opportunities, the gain sector faces several challenges – including low productivity, inconsistent access to inputs for farmers, exposure to global market fluctuations and climate variability, among others.

Consequently, it’s critical to ensure the grains sector continues contributing positively to Ghana’s economic growth and food security.

With the country losing approximately 1.46 million hectares of tree cover in the last two decades – much of it due to mining activities and environmental degradation, the Council maintains these activities have degraded large tracts of arable land and polluted water-bodies; further exacerbating challenges faced by farmers.

Coupled with the above, post-harvest losses in the grain industry remain alarmingly high, with estimates suggesting that 30-40 percent of grains are lost annually due to inadequate storage, transportation and processing facilities.

These losses reduce the profitability of smallholders and contribute to food insecurity.

However, investment in rural infrastructure – including roads, storage facilities and market platforms – are key to reducing the losses and improving access to markets.

Stakeholders at the Ghana Grains Forum in Accra also admitted that the drought has threatened to wipe out billions of cedis invested; and the ban on grain exports, though necessary, has a tendency to challenge local grain producers’ competitiveness.

As a result of climatic variations due to climate change, the Chamber of Agribusiness (CAG) has called on the Ministry of Food and Agriculture to review its approach to addressing food security and implement long-term solutions to solve the root-causes of food insecurity and promote productivity and resilience.

While the Chamber applauds government for its effort to distribute food grants to over 800,000 farmers affected by dry spells in the country’s northern and middle belts, it emphasises that a sustainable solution is critical for dealing with the issue at hand.

Government must first of all expand existing dams for dry-season farming to reduce reliance on seasonal rainfall for cropping, thus enhancing food production during the dry season and promoting self-sufficiency all year round.

“In addition to this, government should procure and supply irrigation pumps, drip-lines, water pipes, sprinklers and other relevant accessories to affected areas for use,” the Chamber notes.

It also suggested that government should engage with banks, financial institutions and agro-input importers to reduce interest rates and debt repayment modes for farmers who are victims of the dry spell.

Adopting this measure will alleviate the financial burden on farmers emanating from loans and facilities they received from financial institutions in support of their businesses.

That said, the Chamber questioned criteria used in identifying the 800,000 farmers; the agency responsible for distribution; and how the grants will be distributed fairly and efficiently.

The Chamber is impressing on government to design a 10-year policy plan that presents a well-documented and coherent agricultural social protection intervention mechanism; and establishing a national agriculture risk management agency, among others.

Food and Agriculture Minister Bryan Acheampong observed that the dry spell, which many feared would trigger a food crisis, was anticipated and accounted for well before it struck; underscoring the ministry’s proactive stance in mitigating the effects of adverse weather conditions.

The ministry implemented a strategic action plan to support Ghanaian farmers and safeguard the country’s food security.