Following the approval by the Security and Exchange Commission, The Ghana Commodity Exchange on Monday added Ghana rice to the number of commodities traded on its electronic trading platform.
Listing of Ghana rice on Ghana Commodity Exchange, is expected to shore up local rice production and consumption, as government plans to reduce the need for imports and satisfy 100% of local demand by 2025.
“Today we get to witness our very first trade of rice on the GCX trading platform making it the fifth commodity to be traded after maize, soya bean, sorghum, and sesame. Through the Planting for Food and Jobs program, the government of Ghana plans to support the value chain to reduce the need for import and satisfy 100% of local demand by 2025.” Mrs. Tucci Goka Ivowi, CEO of the Exchange said at the launch of the rice trading.
The move is also expected to motivate rice farmers to produce quality rice that can compete favourably on the domestic and international front.
“The exchange aims to standardize rice trading in Ghana with its grading system to enable buyers and sellers appropriately judge the quality of the produce they trade. These innovations give farmers the chance to further enhance the value of their produce and make it a much more attractive option on both the local and international market,” Mrs. Tucci Goka Ivowi further said.
According to The President of Ghana Rice lnter-professional Body (GRIB), Nana Adjei Ayeh II the listing of local rice on the exchange will not only ensure rice quality and guarantee timely payment to farmers, but will also provide a host of marketing opportunities.
“We know what trading through GCX guarantees for the farmer in terms of quality, transparency, and most importantly, timely payment. The addition of rice to the list of contracts traded on the GCX would increase marketing opportunities for rice farmers as well as address post-harvest loss issues and their lack of financing, which are key industry concerns,” Nana Adjei Ayeh II said.
Rice production in Ghana and trading price
Rice, over the years, has become the most consumed food staple in Ghana after maize. The country’s annual rice import bill currently stands at about US$1 billion which is mainly to meet the locally unmet demand.
Local rice farmers for years have struggled with several key challenges such as lack of access to credit facilities, poor infrastructures such as warehousing and unregulated pricing, and the general lack of effective policies to regulate the entire rice value chain.
According to Mrs. Tucci Goka Ivowi will work closely with rice producers to advert these challenges.
“GCX will also support rice farmers to reduce their post-harvest losses, have access to affordable drying, cleaning and weighing facilities, sell their commodity by weight and grade, package to increase appeal to the market, have access to financial markets through our electronic warehouses receipt systems that will enable farmers gain access to affordable finance, using their commodity as sole collateral. Through the exchange, rice farmers will also benefit from a modern efficient trading platform where they can be linked to a larger pool of buyers”, she said.
Ghana rice was sold at GH¢5,140 per tonne on the first trading day.
