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 aimed at addressing the recurring glut of grains, particularly rice, maize, and soya, while safeguarding farmers’ incomes.

Mr John Dumelo, Deputy Minister of Food and Agriculture, announced this in Parliament on Thursday when responding to an urgent question posed by Mr Eric Edem Agbana, Member of Parliament for Ketu North.

The question centered on government’s plans to deal with grain surpluses that often lead to post-harvest losses and price volatility.

Mr Dumelo explained that the government had budgeted GHS100 million in November 2025 and an additional GHS200 million in the 2026 budget to support the Ghana Buffer Stock Company.

The funds would be used to purchase, process, and store grains, thereby cushioning farmers against market shocks.

He said the guaranteed minimum price scheme would ensure that farmers receive fair compensation for their produce, regardless of market fluctuations.

This, he noted, would encourage increased production, and strengthen food security across the country.

The Deputy Minister revealed that the government was partnering with the World Bank Group to refurbish food storage warehouses nationwide.

The collaboration is expected to expand storage capacity, reduce wastage, and stabilise grain supply throughout the year.

Mr Dumelo emphasised that the refurbished warehouses would serve as a strategic reserve, enabling the country to manage excess production and prevent sudden price drops that disadvantage farmers.

He added that the initiative would also enhance Ghana’s preparedness against food shortages.

According to him, the government’s intervention is part of a broader agricultural modernisation agenda that seeks to integrate farmers into structured markets. By linking producers directly with licensed buyers, the policy aims to eliminate exploitative middlemen and ensure transparency in grain trading.

Mr Agbana, who posed the urgent question, welcomed the measures but urged the government to ensure timely implementation.

He stressed that farmers in grain-producing regions had long suffered losses due to inadequate storage facilities and unstable market conditions.

The Deputy Minister assured Parliament that the Ministry of Food and Agriculture was committed to rolling out the programme swiftly.

He noted that the Ghana Buffer Stock Company had already begun engaging the registered LBCs to operationalise the purchase scheme.

The initiative, Mr Dumelo concluded, would not only protect farmers but also contribute to national food security, stabilise grain prices, and reduce Ghana’s dependence on imports.

He reiterated the government’s resolve to support farmers as a cornerstone of economic growth and rural development.