The Institute for Fiscal Studies has proposed that Ghana’s proposed Rice Development Board directly produce and distribute aromatic rice seeds to farmers, targeting consumer preferences that currently drive the country’s GH₵3.05 billion annual rice import bill.
In its latest study titled “Increasing Importation of Rice in Ghana: Can the Country Transform Its Fortunes in the Rice Sector?”, the IFS argued that any solution addressing Ghana’s rice dependency must account for consumer taste preferences, particularly the widespread fixation on fragrant imported varieties from Thailand and India.
Dr. Said Boakye, Senior Research Fellow and Acting Executive Director of IFS, presented the findings at a stakeholder engagement in Accra last week. The study revealed that Ghana spent GH₢1.98 billion on semi-milled or wholly milled rice and another GH₢1.07 billion on broken rice in 2024, making rice imports one of the largest components of the national food import bill.
For years, one of the biggest barriers to local rice consumption has been taste and aroma. Many consumers say imported rice smells better and cooks more evenly, creating market resistance that undermines domestic production efforts despite government interventions spanning decades.
The IFS recommended that the proposed Rice Development Board should collaborate with research institutions to produce, certify, and distribute high-yielding seed varieties, including aromatic rice types comparable to imported brands. If local research capacity remains insufficient, the Board should facilitate importing quality seed varieties for domestic cultivation, aligning production with market demand.
This pragmatic approach acknowledges that consumer preferences can’t simply be legislated away. In a country where the sweet scent of aromatic rice often signals special meals from Sunday feasts to family celebrations, any agricultural strategy ignoring these cultural realities risks failure regardless of its technical sophistication.
Data from the Ministry of Food and Agriculture show per capita rice consumption has risen sharply from 12.4 kilograms in 1980 to more than 61 kilograms in 2022, outpacing domestic production by a wide margin. Rice imports for the 2024/2025 marketing year could reach 950,000 tonnes as the supply gap continues widening.
Increasing urbanization has intensified consumer preferences for imported aromatic rice, which buyers perceive as cleaner and more consistent in quality. This bias limits the domestic market for locally milled rice, dampening investment in local value chains and creating a vicious cycle where production remains small scale because markets seem uncertain.
The proposed Rice Development Board would serve as the central body for planning, financing, and implementing all government interventions in the rice value chain, from production and harvesting to storage and marketing. By directly handling aromatic seed production and distribution, the board could ensure farmers have access to varieties matching consumer expectations.
If locally developed aromatic rice serves as a perfect substitute for imported varieties, the ripple effects could prove transformative. Less foreign exchange spent on imports means more jobs created across the value chain, from seed breeders and farmers to millers and marketers. Local rice farmers cultivating high-grade aromatic varieties would create opportunities for domestic millers to refine products competitive in both local and regional markets.
The IFS study drew comparisons with Vietnam and Thailand, both of which successfully transitioned from rice importers to major exporters through policy coherence, government coordination, and sustained public investment. Vietnam transformed its rice economy by combining state-led coordination with private sector engagement, including land reform, domestic fertilizer production, irrigation expansion, and strong research services that collectively boosted yields.
However, success with aromatic rice production requires more than just seed distribution. Farmers will need training on handling these varieties, which often have different cultivation requirements compared to traditional local rice. Irrigation systems must be reliable, as aromatic rice varieties can be particularly sensitive to water stress. Post-harvest handling matters enormously, as improper drying or storage can compromise the fragrance that makes these varieties commercially valuable.
Marketing and branding present additional challenges. Local rice producers must ensure packaging and quality control can stand toe-to-toe with polished imports that have established brand recognition and consumer trust. The IFS urged a targeted program to enhance consumer confidence in local rice through improved branding, packaging, and quality control.
The think tank emphasized that Ghana possesses over 5.9 million hectares of land suitable for rice cultivation, including four million hectares of lowlands and 1.9 million hectares with irrigation potential, yet uses only a fraction. The country currently devotes a paltry 0.3 percent to 2.6 percent of its agricultural land for rice cultivation, compared to Thailand’s 43.1 to 51.5 percent and Vietnam’s 58.8 to 92 percent.
Dr. Boakye stressed that if Ghana raised yields to Vietnam’s level of six tonnes per hectare, the country could produce over 35.4 million tonnes of paddy rice annually, more than enough to meet local demand and generate export surpluses. If Ghana had produced just 7.4 million metric tons of milled rice in 2022, it could have exported over six million tons, matching Vietnam’s export volume that year which earned that country $3.2 billion.
The study attributes the sector’s low productivity to four main factors: low fertilizer application, ineffective seed systems, limited mechanization, and inadequate irrigation infrastructure. Addressing the seed system component through aromatic varieties tackles both the production and demand sides simultaneously, ensuring farmers can grow rice that consumers actually want to buy.
George Abradu-Otoo, Chief Executive Officer of the National Food Buffer Stock Company, expressed strong support for the proposed Rice Development Board but lamented the low level of funding for local rice purchasing and storage. He disclosed that his outfit received only GH₵100 million out of a GH₵700 million request to buy excess local rice from farmers, highlighting resource constraints that limit government ability to support domestic production.
The Brazilian Ambassador to Ghana, Mariama Gonçalves Madeira, commended IFS for the study and urged government to adopt policies promoting the rice sector, citing Brazil’s success in large-scale rice production through strong government support. Brazil’s experience demonstrates how strategic state intervention can transform agricultural sectors when properly resourced and consistently implemented.
Beyond aromatic seed distribution, the IFS recommended several complementary interventions. The Rice Development Board should actively engage in local fertilizer production, offering tax incentives and subsidies to private investors. Ghana currently imports all its fertilizer, making prices volatile and access limited. Local production would ensure steady supply and cost efficiency.
The Institute also called for mobilizing young people into rice cultivation as a strategic employment intervention. Young people should be supported with seed capital, training, and mechanization services irrespective of political affiliation, enabling them to participate in group-based or cooperative farming ventures. This approach could address youth unemployment while building the labor force needed for expanded rice production.
Frederick Amoh, Research Assistant at IFS, noted that the Volta and Oti regions were chosen for the study because they contribute over 40 percent of Ghana’s rice production. The research examined challenges facing farmers in these regions to bring issues requiring policy attention into sharper focus.
Dr. Boakye emphasized that Ghana’s rice sector must move beyond short-term programs and political showmanship to embrace sustained, non-partisan institutional reforms. The goal should not merely be doubling production but transforming Ghana into a competitive rice-producing economy capable of satisfying domestic needs while generating export revenues.
The aromatic seed strategy represents a middle path between accepting permanent import dependency and expecting Ghanaian consumers to abandon preferences developed over decades. By meeting consumers where they are rather than trying to change their tastes, the approach stands a better chance of success than previous initiatives that ignored market realities.
Whether the government will establish the Rice Development Board and implement these recommendations remains uncertain. Past initiatives including Operation Feed Yourself, Planting for Food and Jobs, and two National Rice Development Strategies have underperformed, largely due to poor strategy, weak implementation, and policy discontinuity as governments change.
The IFS insisted that Ghana’s rice sector has immense potential but remains trapped by weak coordination and insufficient investment. With the country possessing abundant land, favorable growing conditions, and growing domestic and regional markets, the missing ingredients are political will and strategic investment focused on what consumers actually want rather than what policymakers think they should want.
Source: newsghana.com.gh
