Ghana May Tie Rice Import Permits to 50% Local Purchase, Finance Minister Says

Rice importers would have to buy locally grown rice equivalent to half of their intended import volumes before receiving permits to bring the commodity into Ghana, under a proposal announced by Finance Minister Cassiel Ato Forson as part of a broader push to reduce the country's reliance on foreign food and guarantee markets for domestic farmers.

Speaking at an engagement with students and the Kwame Nkrumah University of Science and Technology (KNUST) community on the "New Economy" agenda, Forson said an importer seeking a permit for 100,000 metric tonnes of rice could be required to show evidence of having purchased 50,000 metric tonnes from local farmers .

The proposal comes against the backdrop of Ghana's persistent rice deficit. The country consumed approximately 1.71 million tonnes of rice in 2025 but produced only about 960,000 tonnes, a self-sufficiency rate of roughly 56 percent, according to Agriculture Ministry figures. The shortfall compelled Ghana to spend about US$320 million on rice imports . Trade data show rice imports reached 807,314 tonnes in 2025, with Vietnam, China, Thailand, India and Togo as the top five sources .

The Finance Minister also announced plans to tighten public procurement rules to require government-funded institutions to prioritise locally produced rice, particularly for feeding students under the Free Senior High School programme. He questioned why local rice farmers continued to struggle to find buyers despite the government's annual expenditure of approximately GH¢4.5 billion to GH¢5 billion on Free SHS, of which about GH¢3.5 billion goes towards feeding students .

For the 2026 fiscal year, the government has allocated GH¢4.2 billion for feeding under the Free SHS programme, as part of a total allocation of GH¢9.6 billion to support the programme .

Textiles Cited as Parallel Case

Forson identified the textile industry as another sector that could benefit from stricter local procurement requirements. He questioned why government continued to source uniforms for security agencies from foreign suppliers while local manufacturers, including Juapong Textiles and Akosombo Textiles, struggled to remain operational .

Juapong Textiles, now operating as Volta Star Textiles, has been defunct for years. President John Mahama announced in July 2026 that a strategic investor had been selected to revive the factory, with plans to retool and refurbish its machinery. The plant specialises in producing grey baft, a semi-finished woven fabric used as raw material for finished textile production . Akosombo Textiles has similarly faced chronic operational challenges, though the government has proposed an Akosombo–Juapong Garments and Textiles Park aimed at revitalising the enclave and supporting over 20,000 direct and indirect jobs .

Forson said prioritising locally manufactured uniforms for the military and police would create employment opportunities and support the revival of the domestic textile industry .

Legislation and Sanctions Planned

The Finance Minister indicated that the government intended to translate some of the proposed measures into legislation, with sanctions for individuals and institutions that violate the new procurement requirements. He said the broader objective was to use government spending and trade policies to strengthen local industries, expand employment opportunities and accelerate economic transformation .

The proposal aligns with a broader policy shift signalled by the government. In November 2025, President Mahama directed all schools, from basic to secondary, to purchase rice, maize, chicken and eggs produced in Ghana only, with the Ministries of Education and Finance and the National Food Buffer Stock Company tasked with ensuring compliance . The Agriculture Ministry has separately outlined a roadmap to end the rice deficit within a decade, with import quotas linked to verifiable partnerships with local producers .

Ghana's rice sector has warned that rising imports are undermining local production. The Association of Rice Farmers, Millers and Maize Growers reported more than 200,000 tonnes of unsold paddy and milled rice from the previous season in main growing areas, with imports of milled rice rising 77 percent between 2021 and 2025 . The government has tasked the National Food Buffer Stock Company with buying surplus stocks to stabilise the market.

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Background: Ghana's Rice Economy

Rice has become a staple in Ghanaian diets, particularly in urban areas, but domestic production has struggled to keep pace with demand due to low yields, inadequate milling infrastructure and competition from cheaper, often better-packaged imports from Asia. Successive governments have pledged to boost self-sufficiency, but progress has been uneven. The proposed 50 percent local purchase requirement represents one of the more direct interventions yet, effectively using import licensing as a lever to force market access for local farmers. Whether it succeeds will depend on the capacity of local millers to supply consistent quality at competitive prices—a persistent bottleneck in Ghana's rice value chain.