Commodity Exchange gains momentum

Ghana Grains Council (GGC) says it is constructing two 500 metric tonne capacity grain warehouses in grain surplus areas of Northern and Brong Ahafo regions to serve more than 5,000 small holder farmers, offering them better storage opportunities. It has also earmarked on 25 of 30 metric tonne capacity warehouses to be constructed in the three Northern regions. “So far six of these are under construction in Tamale and are expected to be completed by close of next month. These warehouses will be used as points of aggregation for farmers and traders,” Mr. Tom Gambrah, GGC Board Chairman told industry practitioners, government officials and bankers in Accra. Speaking under the topic: ‘2012 Year of the Warehouse,’ at its first Annual General Meeting, Mr. Gambrah revealed : “GGC in collaboration with ASI Ghana Arzakinmu project funded by Alliance for a Green Revolution in Africa has trained more than 2,500 farmer based organisation in the Northern region on post harvest handling, reducing warehouse storage losses and warehouse receipting system. It has trained 30 warehouse operators, and handlers under the completion of the first Ghana Warehouse Receipt Rules and Regulations.” This development is targeted at establishing the country’s Commodity Exchange (GCX) and the Warehouse Receipt System, to help ensure price stability, provide sustainable and affordable financing system for farmers. Dr. Joe Annan, Deputy Minister of Trade and Industry assured government’s willingness to collaborate with Ghana Grains Council (GGC) to improve commercialization and competitiveness in the grains industry. Dr. Annan explained that the initiative would serve as a platform to create orderly, transparent and efficient marketing system for the country’s key agricultural commodities and promote agricultural investment. “This would enhance productivity, and encourage market access and fair returns for smallholder farmers and facilitate the formalisation of informal agricultural trading. “While commending GGC for their achievement, he said there was the need to bear in mind that any successful warehousing system depended on the active partnership of partner banks and financial institutions. “I am sure that the experience of GCC in the last few years could be tapped even as we seek to roll out GCX and would count on your positive inputs in the days ahead. “Smallholder farmers were facing agricultural marketing problems, which reduced production incentives contributing to stagnation in agricultural output and productivity” Dr Annan said.. Dr Annan explained that, high food price variability made poor consumers in urban and deficit-producing rural areas prone to food insecurity. “Improvement in the performance of agricultural markets would help enhance the livelihoods of the rural and urban poor in the country. “Government would ensure a sound environment for food production and distribution,” Dr Annan remarked.