A recent study by the Institute for Fiscal Studies (IFS) has revealed significant challenges confronting rice producers and millers in the Volta and Oti regions of Ghana — obstacles that continue to limit the sector’s growth and competitiveness.

Presenting the findings, Frederick Amoh, a Research Assistant at the IFS, said the study involved extensive interactions with farmers and millers across the two regions.

It identified several key structural and financial barriers that hinder productivity and profitability within Ghana’s rice value chain.

According to the study, rice farmers in the Volta and Oti regions are struggling with:

Limited access to land and insecure land tenure arrangements, often with high leasing costs and short lease durations.

High input costs, including seeds, fertilisers, and agrochemicals.

Limited access to mechanisation and irrigation facilities restricts productivity and resilience to climate variability.

Marketing and distribution challenges, such as high transportation costs and intense competition from imported rice.

Low farmgate prices for local produce.

Post-harvest losses, largely due to poor storage infrastructure and inadequate handling facilities.

For rice millers, the study noted equally daunting challenges, including:

High energy costs are affecting processing efficiency.

Poor quality of paddy rice, which reduces milling yields.

Expensive spare parts for milling machines.

Unfair competition from imported rice brands that dominate the local market.

Despite these constraints, the IFS emphasised that the local rice sector holds strong potential for expansion and economic transformation if supported by targeted public policy interventions.

The study recommends a series of policy actions to revitalise the rice value chain, including:

Improving access to land and irrigation infrastructure.

Providing affordable inputs such as quality seeds, fertilisers, and agrochemicals.

Promoting mechanisation and the modernisation of farming practices.

Enhancing marketing and storage systems to reduce post-harvest losses.

Supporting millers with affordable energy and locally available spare parts.

Mr. Amoh noted that implementing these recommendations would not only boost domestic rice production but also help reduce Ghana’s dependence on imported rice, improve rural livelihoods, and contribute to food security.