Rice oversupply poses risk to farmers, market stability — NAFCO Boss

The Chief Executive Officer of the National Food Buffer Stock Company (NAFCO), George Abradu-Otoo, has expressed concern over a worsening rice glut in Ghana, warning that the growing surplus threatens farmers’ livelihoods and the stability of the local market.

Ghana’s rice sector has experienced persistent oversupply in recent years, resulting in tens of thousands of tonnes of unsold produce. The situation has been linked to increased domestic production, the influx of cheaper imported rice and smuggling across borders.

In late 2025, the Peasant Farmers Association of Ghana (PFAG) disclosed that more than 200,000 tonnes of paddy rice and maize remained unsold, with some farms left unharvested due to the absence of buyers.

Speaking on Face to Face on Channel One TV on Tuesday, February 3, 2026, Mr Abradu-Otoo acknowledged that despite ongoing efforts to improve coordination within the supply chain, excess supply remains the sector’s most pressing challenge.

“Our main concern at the moment is the glut,” he said, warning that continued oversupply could drive prices down and undermine the sustainability of the rice market.

To help manage the surplus, he revealed that NAFCO has licensed 14 companies to operate within the rice supply chain. These companies work through authorised agents who purchase rice directly from farming communities, including Asutsuare.

“So far, we have licensed about 14 companies. Once licensed, their agents can go to places like Asutsuare to buy rice, deliver it to our warehouses and provide the necessary documentation,” he explained.

While the licensing initiative is expected to enhance coordination and improve the absorption of locally produced rice, Mr Abradu-Otoo stressed that more robust interventions are urgently needed to better align production with market demand and protect farmers from heavy financial losses.