Government Registers 45 grain buyers to protect farmers and tackle produce glut
The Government of Ghana has registered 45 licensed buying companies (LBCs) through the Ghana Buffer Stock Company to purchase grains directly from farmers at guaranteed minimum prices.
The initiative is designed to address the persistent glut of key crops such as maize, rice, and soya while protecting farmers from losses caused by price fluctuations and post-harvest waste.
Deputy Minister for Food and Agriculture, John Dumelo, disclosed this in Parliament on Thursday while responding to an urgent question from Ketu North MP Eric Edem Agbana regarding measures to manage grain surpluses across the country.
According to Dumelo, the government allocated GHS100 million in November 2025 and an additional GHS200 million in the 2026 national budget to strengthen the operations of the Ghana Buffer Stock Company.
He explained that the funds would be used to purchase, process, and store grains, helping to stabilise the market and guarantee farmers a fair return on their produce regardless of market conditions.
“The guaranteed minimum price policy will ensure farmers receive fair compensation for their crops while encouraging increased production and enhancing national food security,” he said.
The Deputy Minister also revealed that the government is collaborating with the World Bank Group to rehabilitate food storage warehouses across the country. The project aims to expand storage capacity, reduce post-harvest losses, and ensure a steady supply of grains throughout the year.
He noted that the upgraded warehouses would serve as strategic reserves, enabling the country to manage excess production effectively and prevent sharp declines in grain prices that often disadvantage farmers.
Dumelo said the intervention forms part of the government’s broader agricultural transformation agenda, which seeks to integrate farmers into structured and reliable markets. By linking producers directly with licensed buyers, the programme is expected to reduce the influence of exploitative middlemen and improve transparency in grain trading.
Responding to the minister’s statement, Mr Agbana welcomed the initiative but urged the government to ensure its swift implementation. He noted that many farmers in grain-producing areas have suffered significant losses due to inadequate storage facilities and unstable market conditions.
Dumelo assured Parliament that the Ministry of Food and Agriculture is committed to rolling out the programme without delay. He added that the Ghana Buffer Stock Company has already begun engaging the registered buying companies to operationalise the grain purchase scheme.
He stressed that the initiative would not only protect farmers’ livelihoods but also strengthen national food security, stabilise grain prices, reduce dependence on imports, and support rural economic growth.
“The government remains committed to supporting farmers as a key pillar of economic development and national prosperity,” he concluded.
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