Government has released GH₵260.4 million to settle part of the Ministry of Food and Agriculture’s (MoFA) indebtedness to 71 fertiliser producing companies, Food and Agriculture Minister, Dr Owusu Afriyie Akoto, has told Parliament.
The release of the funds forms part of the ministry’s efforts to address the shortage of subsidised fertilisers facing smallholder farmers in the country.
Dr Akoto was reported to have lamented the failure of the finance ministry to release GH¢700 million for onward payment to fertiliser dealers, and other subsidies, since the beginning of last year, a situation he said threatened the sustainability of the Planting for Food and Jobs (PFJ) initiative.
In an answer to questions asked by NDC MPs for South Dayi and Bawku Central, Rockson-Nelson Dafeamekpor and Mahama Ayariga, on what steps were being taken to improve supplies to farmers, Dr Akoto said his outfit has held meetings with stakeholders to address the issue.
The minister said: “The distribution of fertilisers, especially to the northern part of the country has significantly improved following an emergency meeting between the suppliers and the ministry.”
According to him, the ministry in September, 2020, signed an agreement with various fertiliser companies, but international prices of fertilisers shot up six months after the contracts were signed, affecting the budget of the ministry.
He said that the impact of COVID-19 on global industries affected the working capital of the fertiliser companies, rendering them incapable of importing adequate fertilisers for distribution.
Dr Akoto said other factors that accounted for the inadequate subsidised fertilisers for farmers, included delays in payment, smuggling of fertilisers and illegal cross-border trade of fertiliser between traders in Ghana and Burkina Faso as well as other neighbouring countries.
In related answer to a question by the NDC MP for Wa East, Mr Godfred Seidu Jasaw, on arrangements to supply agro-inputs like seeds, fertilisers, pesticides, weedicides to farmers in his Constituency under the PFJ, Dr Akoto said his ministry signed contracts with seed companies to supply various types of fertiliser and seeds in November, 2020, across the country.
The ministry, prior to signing the contracts, he said assessed the inputs requirement of the regions and shared the information with the Regional Departments of Agriculture, District Departments of Agriculture and the companies to distribute fertiliser and seeds to small-holder farmers across the country to enhance food production.
“Following the implementation of the programme, the ministry has been monitoring the distribution of inputs at the district, regional and national levels to meet demand in relevant areas including the Wa East District.
“To promptly address emergency issues, information gathered through monitoring visits is shared with the various stakeholders including the fertiliser and seed companies for necessary action,” Dr Akoto said.
The District Director of Agric, in relation to the Wa area, Dr Akoto said it had been furnished with details of the contact on all input suppliers for the year.
“Mr Speaker, the ministry through its monitoring team is constantly in touch with the DDAs to ensure that fertiliser and seeds are available in all relevant constituencies including the Wa East,” he said, stressing that the Wa area had its fair share of the inputs.
BY JULIUS YAO PETETSI
