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Results for a Western African Country :. Incentives and Disincentives for the Rice Sector in Ghana. Ghana . Key Facts about Ghana. Source: SRID, Facts and Figures. Introduction (1/2) . Ghana is food sufficient in all staples except rice - PowerPoint PPT PresentationTRANSCRIPT
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Results for a Western African Country:
Incentives and Disincentives for the Rice Sector in Ghana
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Ghana
Key Facts about Ghana No Item Facts 1 Total Land Area 23,884,245 Hectares
2 Agric. Land Area 14,038,224 Hectares (58.8%)
3 Agric Land under Cultivation
≈ 56%
4 Population Estimate (2012)
25.91 Million
5 Population Growth Rate 2.5% per annum
6 Principal Agricultural Exports
Cocoa, Timber, Horticultural Products, Fish/Sea Foods, Game & Wildlife
7 Principal Mineral Resources
Petroleum, Gold, Bauxite, Manganese and DiamondSource: SRID, Facts and Figures
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Introduction (1/2) •Ghana is food sufficient in all staples except rice•Rice is second most important grain food staple next to maize •Estimated 610,000 mt consumed in 2012
•Local production satisfies about 35% of demand
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Introduction (2/2)
•Among the top 50 rice producers worldwide •Most imported of all cereals -58%(CARD, 2010) •Average annual import bill of about USD 450 million (MoFA and AGRA, 2010)
Areas of Rice Production in Ghana • All the ten regions of Ghana• Concentrated in three different ecologies;
– Lowland rain-fed ecology (78%)– Upland rain-fed ecology (6%), and– Irrigated ecology (16%)
Rice Production ('000mt)
2005 2006 2007 2008 2009 2010 2011 20120
100200300400500600
237 250185
302391
492 463 481
Paddy Rice
Source: MoFA, 2012 APR
Rice Production & Consumption
2008 2009 2010 2011 20120%
20%
40%
60%
80%
100%
Production Consumption Deficit
Source: MoFA 2012 APR
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Rice Import ('000mt)
2005 2006 2007 2008 2009 2010 2011 20120
100
200
300
400
500
600
485
390442
395 384320
543509
Source: SRID, Facts and Figures
Sources of Ghana rice Imports (average 2005-2010)
Source: UN Comtrade
Policies /Programmes Interventions • 20% import tariff on CIF value (temporarily
suspended in 2008 and reinstated mid-2009)• Input Subsidies;
– Fertilizer Subsidy Programme (2008 - date)– Block Farm Programme (2009 - date)– Seed Subsidy Programme (2012 - date)– AMSECs (2010 - date)
• NAFCO (2010 - date)• Rice Projects (e.g. RSSP, Jica Rice Proj etc)
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Impact of Tariff and Access Costs on Imported Rice
Source: MAFAP Calculations
Price Incentives in relative terms for producers and wholesalers
Source: MAFAP Calculations
Key Findings• Wholesalers faced incentives for the whole period
under analysis given their closer connection with the international markets
• The level of incentives for wholesalers is above the 20% import tariff in all years
• Farmers face disincentives for the year 2009 and 2010 which may be justified by the market inefficiencies between the producing areas and wholesale markets
• High access costs and bad price transmission are the main drivers of disincentives at producer level
Recommendation
• Policy interventions are good tools but need to be better targeted to address market inefficiencies and infrastructural gaps
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