The country’s rice imports will increase to 330,000 metric tonnes in the 2011/2012 market year, up from an estimated 320,000 metric tonnes for the 2010/11 market year, the latest report says. “This is due to increases in demand for rice and the shortfall in domestic production,” said USDA Foreign Agricultural Service report. This volume of exports will bring the total rice imports bill to some US$300million -- although it could be higher if global prices breach current stable levels. According to the report, domestic rice production for the 2011/2012 market year will rise to 310,000 metric tonnes, up from 295,000 metric tonnes in 2010/2011 market year. The sharp increase is due to government’s commitment to increase rice yields by introducing improved high-yielding, disease-resistant rice varieties to producers and assisting them to adopt low-cost water-management practices. Fertiliser use in rice production in the country is low due to its high cost, resulting in low productivity in production. The average yield of rice has been between 1-2 tonnes/ha paddy and could be higher. The government believes that subsidies will make fertilisers more affordable, thereby increasing application rates which will ultimately increase yields. In view of this, government intends to improve the quality of locally produced rice in order to stimulate demand for it. Regarding rice consumption, the report estimates 620,000 metric tonnes for 2011/2012 market year. A recent presentation on the National Rice Development Strategy (NRDS) for Ghana revealed that the per capital rice consumption in Ghana is currently 38kg and that it will rise to 63kg in 2015, giving an aggregate demand of 1.68 million metric tonnes. Rice consumption has been increasing over the years with population growth, because rice continues to be part of the main diet in most Ghanaian homes due to its relative convenience in preparation and palatable recipes. Rice is now a major competitor to traditional staple foods in Ghana. Additionally, the increasing number of fast-food restaurants and vendors in the major cities has increased the demand for rice. Imported rice is preferred by Ghanaian urban consumers because of its higher quality. According to Ministry of Food and Agriculture Facts and Figures Report (2009/2010), urban markets represent about 76 percent of total rice consumption. MOFA however indicates that only 20 percent of locally-grown rice is consumed in urban areas, with the rest consumed in rural areas. Domestic rice production and supply has not kept pace with the increasing demand for high quality rice and the changing consumer preferences towards fragrant and long-grain white rice. Some Ghanaians prefer U.S. long-grain rice, despite the fact that it is often one of the highest priced on the market, because of its high quality and taste. In addition, fragrant long-grain white rice from Thailand is strongly competing with US rice but is mostly preferred by the high-income consumers. To cushion the impact of the global food crisis, in May 2008 the Government of Ghana, removed the 20 percent duty on rice and other products but restored it in January 2010. The restoration of the 20 percent duty slowed down rice imports in 2010. However, the demand for rice is increasing and this creates an opportunity for increased rice imports. The countries that supply the bulk of the rice to Ghana are the United States, Thailand, Vietnam, China, Pakistan, India, and Korea. Different grades of rice are imported into Ghana ranging from the more expensive fragrant (Thai) rice, U.S. rice, and Chinese parboiled rice to cheaper 70 percent broken rice. The U.S. is a primary supplier, with about 30 percent market share. In Ghana both imported and domestic rice are sold on the same market in the urban centres. The wholesale price of a 50 kg bag of U.S. rice ranges between GH¢80 (US$53.33) and GH¢100 (US$66.66) depending on the grade; Thai rice ranges between GH¢120 (US$80) and GH¢150 (US$100); and Chinese rice between GH¢60.00 (US$40) and GH¢70(US$46.6).