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Results for a Western African Country :. Incentives and Disincentives for the Rice Sector in Ghana. Ghana . Key Facts about Ghana. Source: SRID, Facts and Figures. Introduction (1/2) . Ghana is food sufficient in all staples except rice
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Results for a Western African Country: Incentives and Disincentives for the Rice Sector in Ghana
Key Facts about Ghana Source: SRID, Facts and Figures
Introduction (1/2) Ghana is food sufficient in all staples except rice Rice is second most important grain food staple next to maize Estimated 610,000 mt consumed in 2012 Local production satisfies about 35% of demand
Introduction (2/2) Among the top 50 rice producers worldwide Most imported of all cereals -58%(CARD, 2010) Average annual import bill of about USD 450 million (MoFA and AGRA, 2010)
Areas of Rice Production in Ghana • All the ten regions of Ghana • Concentrated in three different ecologies; • Lowland rain-fed ecology (78%) • Upland rain-fed ecology (6%), and • Irrigated ecology (16%)
Rice Production ('000mt) Source: MoFA, 2012 APR
Rice Production & Consumption Source: MoFA 2012 APR
Rice Import ('000mt) Source: SRID, Facts and Figures
Sources of Ghana rice Imports (average 2005-2010) Source: UN Comtrade
Policies /Programmes Interventions • 20% import tariff on CIF value (temporarily suspended in 2008 and reinstated mid-2009) • Input Subsidies; • Fertilizer Subsidy Programme (2008 - date) • Block Farm Programme (2009 - date) • Seed Subsidy Programme (2012 - date) • AMSECs (2010 - date) • NAFCO (2010 - date) • Rice Projects (e.g. RSSP, Jica Rice Proj etc)
Impact of Tariff and Access Costs on Imported Rice • Source: MAFAP Calculations
Price Incentives in relative terms for producers and wholesalers • Source: MAFAP Calculations
Key Findings • Wholesalers faced incentives for the whole period under analysis given their closer connection with the international markets • The level of incentives for wholesalers is above the 20% import tariff in all years • Farmers face disincentives for the year 2009 and 2010 which may be justified by the market inefficiencies between the producing areas and wholesale markets • High access costs and bad price transmission are the main drivers of disincentives at producer level
Recommendation • Policy interventions are good tools but need to be better targeted to address market inefficiencies and infrastructural gaps