The government is stepping up efforts to prevent an impending food insecurity crisis caused by the ongoing dry spell in the Northern and Middle Belts.
In response, the government has mobilized funds, temporarily banned grain exports, and prioritized grain imports.
Finance Minister, Dr. Mohammed Amin Adam announced that the government has secured a $1 million insurance policy to safeguard smallholder farmers in the northern region against future droughts. The policy guarantees a $5 million payout in the event of a drought.
“The government has purchased an insurance policy against future droughts in the northern region. We are paying a premium of one million dollars, with a potential payout of five million dollars if we experience a drought. This will cover smallholder farmers in the northern region,” he stated.
Minister for Food and Agriculture, Bryan Acheampong defended the government’s request to withdraw GHS 500 million from the contingency fund, explaining how the funds will be allocated as part of the total GHS 8.3 billion required.
The money will be used for seeds and fertilizers, feed grants, cash transfers, rice and maize imports, and poultry feed.
“We have a commitment of 500 million from the contingency fund, and we will allocate it accordingly. Not in equal proportions, as some items are being imported. Whatever we receive from the agreed budget, contingency fund, and other Ministry allocations, we’ll distribute to address the situation.”
Chair of the Finance Committee of Parliament, Patrick Boamah, assured that the funds would be promptly approved once all release criteria are met, despite concerns raised by the Minority.
Source: Adomonline
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