The Ghana Commodity Exchange (GCX) has called for a policy framework that would require foreign buyers of Ghanaian agricultural commodities to purchase through the exchange rather than sourcing directly from farm gates.

According to the GCX, channelling commodity purchases through the exchange will help regulate the agricultural market, improve price stability, increase government revenue, and provide better data for national planning.

Speaking on Joy FM’s Super Morning Show on Thursday, July 23, Joseph Nai Anum, Managing Marketing and Business Development at the Ghana Commodity Exchange, said one of the major challenges affecting Ghana’s agricultural sector is the competition created by foreign buyers who go directly to farming communities to purchase commodities.

He explained that these foreign buyers often compete with local processors and traders, creating challenges within the domestic agricultural value chain.

"One of the major challenges affecting our agricultural agenda has to do with foreigners who go into our farm spaces or the farm gates to buy commodities," he said.

"They compete seriously with our local buyers and processors. We believe that if these foreign buyers are regulated and allowed to buy commodities mandatorily through the Ghana Commodity Exchange, it would help stabilise the agricultural space and also stabilise prices."

Mr Anum said the GCX’s next major objective is to facilitate the trading of export-oriented commodities such as cashews, shea nuts, and soybeans through the exchange, with support from government policy.

He noted that requiring foreign buyers to trade through the GCX would bring several benefits, including improved tax collection, better price regulation, and enhanced government oversight of commodity flows.

"One of the benefits is that the government will be able to collect taxes after trades from these foreigners. It will also help regulate prices and give sellers and farmers the best prices they can get," he said.

He added that the system would also provide critical data on the volume of commodities leaving the country, allowing the government to make better-informed decisions on agricultural policies and planning.

"When these foreigners are trading, we get to know how much is being taken out of the country, and the government can use that information in planning within the agricultural space," he explained.

GCX Encourages Farmers and Businesses to Use Exchange Platform

The Head of Operations at the Ghana Commodity Exchange, Wendy Malm, encouraged farmers, processors and businesses to make greater use of the exchange to improve access to markets, storage facilities, and financing opportunities.

She said farmers who bring their commodities to GCX warehouses will benefit from secure storage facilities, including insurance coverage to protect their produce.

"We would want to encourage everyone to patronise and use the Ghana Commodity Exchange. For farmers, they can bring their commodities for storage in the GCX warehouses," she said.

"This will ensure that the commodities are well stored. We also have insurance on all our warehouses, so we will ensure that your commodities are safe and sound."

Mrs Malm explained that farmers could also access finance through the warehouse receipt financing system while benefiting from competitive prices through the GCX trading platform.

She also urged buyers, including food producers and animal feed manufacturers, to source commodities through the exchange to guarantee access to quality grains in the right quantities.

"Whether you need commodities for food production or animal feed production, you will be able to have access to quality grains and the right quantity, including large volumes, at every point in time," she said.

GCX Promotes Safer Local Food Consumption

Mr Anum also encouraged consumers of local staples such as kenkey and banku to purchase commodities traded through the Ghana Commodity Exchange, stressing that the platform promotes food safety standards.

He said commodities traded through the exchange are tested to ensure quality, including protection against harmful substances such as aflatoxin.

The Ghana Commodity Exchange, established to improve transparency and efficiency in Ghana’s agricultural markets, provides a platform where farmers, traders, processors and buyers can trade commodities under a regulated system.