Demand for rice in Ghana has far outpaced the capacity of local production. Ghanaians have developed strong taste for foreign rice. About 66% of rice consumed in Ghana is being imported at a cost of $1.2bn per annum. The bulk of the rice imports come from Thailand, USA, Vietnam and India. Yields from rice fields are very low compared to our neighboring countries. This is attributed largely to low level of mechanization and adoption of productivity enhancing technologies. Industry players and consumers have also raised concerns about poor marketing of locally produced rice. In short, Ghana's rice production systems are not globally competitive.
The Government of Ghana is considering banning the importation of rice. The main objective of Ghana's rice import substitution policy is to boost local rice production, create jobs, achieve rice self-sufficiency and reduce rice imports bills.
From the forgoing,
should the Government of Ghana ban rice importation?
Usually, export diversification is preferred to import substitution as a development strategy. However, the protection of national production can make sense (infant industry) if, in accordance with sunset legislation, this actually improves national production conditions within a certain period of time so that rice, for example, can be produced under competitive conditions. However, if this has not been the case for a number of years, national funding should be ended.
Stopping the import of rice will lead to an increase in the price of domestically produced rice. This means inflation and even hunger. The government can help farmers mechanize their production. This is a long-term solution.
An interesting question and good posts. From my own personal experience in considering national rice sector development this can take quite a long time in terms of decades. This is not as per the lack of national capacity, far from it, but the implementation of national rice development plans. This , usually, requires a multi pronged effort that includes a great deal of differing aspects to consider, ranging, for example, from soil fertility improvement , to increasing water resources and distribution, to mechanization, to soft and hard infrastructures, to marketing and so forth. This aspects to consider also need buy-in and most importantly consensus and acceptance by national stakeholders. For example, mini rice harvesters, may be very good for rice yields, but such a technology needs to be accepted from a local cultural, social, economic and political perspective for adoption. Much the same can be said for rice marketing improvement programmes, for example. Rice marketing will need to consider not only the micromarketing aspects, but also the macromarketing as well as mesomarketing aspects. These matters can all be done, but it takes time and from my own personal view point, it may be more feasible in the short term to continue rice importation, but at the same time commence a rice national development plan and most importantly its implementation.
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