The Minister for Food and Agriculture, Dr. Owusu Afriyie Akoto, asserts that the country’s food inflation is not due to a food scarcity, but rather to overpricing by retailers.
Dr. Afriyie Akoto argues that sufficient food is available on the market.
He noted that the present food inflation is a consequence of rising production costs, high transportation costs, and excessive pricing by retailers.
“I am coming from the field. Every year I go around the 16 regions to observe for myself and formulate realistic policies. I just came back 8 days ago from a tour of five regions. Ashanti, Ahafo, Bono, Bono East, and Eastern Region which are the main forest belts.”
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“Per my checks and interactions with stakeholders, there is enough food out there. I went with all the 13 directors at the headquarters. Our directors were deployed to major markets in these regions. Data from nine major markets in the Ashanti and Bono East regions revealed that the volume of maize in the last 10 days was 27,000 metric tonnes. There is enough food in the system.”
The Food and Agriculture Minister said on Face to Face on Citi TV that inflation in the nation is mostly caused by three factors: the high cost of food production and high transportation expenses, which are the consequences of the Russian-Ukrainian conflict and the Covid-19 outbreak.
He named overpricing by traders as the third factor.
Dr. Afriyia Akoto elaborated on the third factor driving food inflation, stating that “unknown parties are exploiting the system.”
“Techimantia is about 2 and a half hour drive from Kumasi. When I went to the market, tomatoes were sold at GH¢150. If we take into account the cost of transportation and add another GH¢30, it is supposed to sell at a little over GH¢180 in Kumasi. But there are traders who sell tomatoes in Kumasi for GH¢ 250 to GH¢300.”
“Somebody is making supernormal profits,” he added.
The minister said that the ministry is collaborating with relevant parties to get to the bottom of the situation.
“Together with the Transport Minister, we are engaging transport unions. In the meantime, the Ministry of Gender has had a meeting with 90 market queens from around the country.”
The persistent rise in transportation costs throughout the nation has lifted the national food inflation rate for May 2022 to 30,1%, up from April’s 26.6 percent.
The Consumer Price Index (CPI) statistics issued by the Ghana Statistical Service reflected this.
SOURCE: CITINEWS
