Govt registers 45 LBCs to purchase grains to tackle food glut — MoFA

Government of Ghana, through the Ghana Buffer Stock Company, has registered 45 licensed buying companies (LBCs) to purchase grains directly from farmers at guaranteed minimum prices.

The initiative is intended to address recurring surpluses of key staples such as rice, maize, and soya, while protecting farmers' incomes from market fluctuations.

Deputy Minister for Food and Agriculture, John Dumelo, disclosed this in Parliament on Thursday, June 11, while responding to an urgent question from the Member of Parliament for Ketu North, Eric Edem Agbana.

The question focused on the government's strategy for managing grain surpluses, which often result in post-harvest losses and unstable prices.

Dumelo explained that the government had allocated GH¢100 million in November 2025, with an additional GH¢200 million earmarked in the 2026 budget to strengthen the Ghana Buffer Stock Company. The funds, he said, will be used to purchase, process, and store grains to cushion farmers against market shocks.

He noted that the guaranteed minimum price arrangement is designed to ensure farmers receive fair and stable returns regardless of market conditions. This, he added, is expected to boost production and enhance food security nationwide.

According to him, the government is also working with the World Bank Group to refurbish food storage warehouses across the country. The project is expected to expand storage capacity, reduce post-harvest losses, and help stabilise grain supply throughout the year.

Dumelo said the upgraded warehouses will serve as strategic reserves to manage excess production and prevent sharp price drops that usually disadvantage farmers, while also strengthening the country's preparedness against food shortages.

He further indicated that the intervention forms part of a broader agricultural modernisation agenda aimed at integrating farmers into structured markets. By linking producers directly to licensed buyers, the policy seeks to reduce the influence of middlemen and improve transparency in grain trading.

Agbana welcomed the initiative but urged the government to ensure its timely implementation, noting that farmers in major grain-producing areas continue to suffer losses due to inadequate storage and price instability.

Dumelo assured Parliament that the Ministry of Food and Agriculture is committed to rolling out the programme without delay. He said the Ghana Buffer Stock Company has already begun engagements with the registered LBCs to operationalise the purchasing system.

He added that the initiative will strengthen food security, stabilise grain prices, reduce reliance on imports, and support farmers as a key driver of economic growth and rural development.

Source: GNA