Over 2 million peasant farmers across the country are shaking in fear over indications that Government is looking to cancel its subsidy on fertilizer and other farming inputs in future planting seasons
Government has been gradually reducing its quota of subsidies over the past years. Government used to share 50:50 burden on fertilizer cost with farmers in 2017 but that figure has been reduced over the past 5 years and now Government only bears 37% of fertilizer cost in 2021
The Head of Programmes and Advocacy at the Peasant Farmers Association of Ghana (PFAG) made some interesting revelations concerning the whole matter. According to Dr. Charles Nyaaba, though Government reduced the subsidy to 37%, the ministry of food and Agriculture reduced it further to 27% informing consultation with farmers
“We started this season with the cost of subsidized fertilizer selling at ghc48, and within a month it was adjusted to ghc53 with no prior notice to farmers”, he said
He added in a meeting with the sector minister, Dr. Owusu Afriyie disclosed that Government is looking to gradually take subsidies off fertilizers.
That will be very bad for the general prices of foodstuffs as such an action taken by Government would escalate food prices. Agriculture contributes to about 20 percent of Ghana’s gross domestic products.