Government Considers 50% Local Rice Purchase Requirement for Import Permits – Ato Forson

The government of Ghana is considering a new policy that could require rice importers to purchase locally produced rice equivalent to 50 per cent of their intended import volumes before they are granted permits to bring foreign rice into the country.

Finance Minister Dr Cassiel Ato Forson announced the proposed measure during an engagement with students and members of the Kwame Nkrumah University of Science and Technology (KNUST) community as part of discussions on the government’s New Economy agenda.

According to the Finance Minister, the initiative is aimed at reducing Ghana’s dependence on imported rice, creating a reliable market for local farmers and encouraging increased domestic production.

Explaining how the proposed arrangement would work, Dr Forson said an importer intending to bring in 100,000 metric tonnes of rice could be required to provide evidence of purchasing 50,000 metric tonnes from Ghanaian farmers before receiving approval to import the remaining quantity.

He argued that Ghana could no longer continue allowing imported products to dominate the local market while domestic farmers struggle to find buyers for their produce.

The Finance Minister also disclosed plans to introduce stricter public procurement requirements to ensure that government-funded institutions prioritise locally produced rice, particularly for feeding students under the Free Senior High School (Free SHS) programme.

He questioned why Ghanaian rice farmers continued to experience difficulties selling their produce despite the government’s substantial expenditure on the programme.

Dr Forson indicated that government spends approximately GH¢4.5 billion to GH¢5 billion annually on Free SHS, with about GH¢3.5 billion allocated to feeding students.

He believes a significant portion of that expenditure should support local agricultural production rather than create opportunities for foreign suppliers.

The Minister further identified the textile industry as another sector that could benefit from policies requiring government institutions to purchase locally manufactured products.

He questioned why uniforms for the military and police should continue to be sourced from abroad when Ghanaian textile companies, including Juapong Textiles and Akosombo Textiles, require stronger market support.

Dr Forson said the government intends to translate some of these proposals into legislation and introduce sanctions for individuals and institutions that fail to comply.

The proposed rice import policy forms part of broader efforts to strengthen local industries, create employment opportunities, support farmers and reduce Ghana’s dependence on imported goods.

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