A commodity exchange and development of a regulated warehouse receipt system will be ready by 2012, Chairman of National Committee on Commodity Exchange, Joe Tackie, has disclosed.
It will help assist farmers to gain easy access to ready markets - both locally and internationally.
“Ideally, by last quarter of 2012, the operation of the commodities exchange should take-off if we are able to complete the regulatory framework and implementation of the strategies within the timelines set,” he said.
“Government has set up a special body comprising officials from Ministry of Finance and Economic Planning, Food and Agriculture, Trade and Industry, Securities and Exchange Commission (SEC) as well as the Ghana Standards Board, Ghana Grains Council and Buffer Stock Company to set out the rules of engagement,” Mr. Tackie told B&FT in an interview.
The exchange is expected to begin trading in agricultural products and other raw materials like wheat, barley, sugar, maize, coffee, cotton, millet among products.
He explained that the committee is currently finalising the evaluation and appointment of a consultancy firm for the development of the legal and regulatory framework. This will ensure that all those in the value chain in agriculture sector are involved.
The exchange’s establishment will help to deal with challenges facing the supply of agricultural produce, which in turn will deal with food inflation. It will as well provide a potent tool for a farmer to manage price fluctuations, stabilise his/her income and gain access to relatively cheaper credit.
There have been three failed attempts to establish a commodities exchange, due to the unavailability of a regulatory framework.
Ghana will be the fifth country in Africa after South Africa, Nigeria, Kenya, and Ethiopia to operate a commodities exchange that aims to embark on an aggressive overhaul of its agricultural sector.
Private enterprise operators have welcomed government’s decision to speedily establish the commodities exchange.
“Since Ghana’s economy is basically agricultural, it would make a lot of sense to see to the establishment of an effective commodity exchange that not only eliminates the regular post-harvest losses through buying of produce for storage, but also put money in the pockets of farmers in the short-term to facilitate their downstream operations,” Dr. Osei Boeh-Ocansey, former Director General of the Private Enterprise Foundation (PEF) said.
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