Exporters of agricultural products in Ghana have expressed concern about high interest rate charged by banks managing funds released by the Export Development and Investment Fund (EDIF).

According to the farmers, the EDIF facility is given to farmers at 2.5% interest rate but when it gets to the banks for disbursements, farmers are charged 12.5%, a situation they described as unacceptable.

The Export Development and Investment Fund (EDIF) was established by Act 582 in October 2000 to provide financial resources for the development and promotion of the export trade in Ghana.

The Act 582 was later amended in 2011 to include the provision of financial resources for the development and promotion of agriculture relating to the agro-processing industry.

The Vice President of the Papaya and Mango Producers Association of Ghana Mr. Bassam George Adun said, eventhough the fund is aimed at encouraging farmers to invest more in the agricultural industry, the current interest rates charged by the banks deter farmers from accessing the facility.

Mr Adun made this known in an interview with Myjoyonline.com.

He observed that farmers are unable to pay back loans received from the Export Development and Agricultural Investment Fund (EDAIF) because of high interest rate charges by the banks, adding that the move affects efforts at attracting the youth to venture into agriculture.

Apart from the high interest rates that affect agricultural businesses in Ghana, the quality of product that is exported to the foreign markets is another area of concern. He revealed that farmers are unable to meet the global standards for agro products.

He added that though the Ministry of Food and Agriculture continues to give the relevant information in terms of technical advice to farmers, the high interest rates charged by the banks makes it impossible for farmers to meet the required quality needed for the foreign markets.

In Ghana, only twenty mango farmers are able to produce the type of quality that is needed for export. In this regard, a German Development Corporation(GIZ) an International enterprise own by the German Federal Government has embark on a training programme to train farmers to be able to meet the standards required for export.

Mr Adun hinted, Ghana has the potential to supply West Africa with fruits such as mangoes due to the enormous resources at their disposal but said the situation remains stagnant because people do not appreciate the need to go into agriculture.