The Ghana Commodity Exchange (GCX) has called for a policy framework that would require foreign buyers of Ghanaian agricultural commodities to purchase through the exchange rather
The report indicates that the Ghana Commodity Exchange (GCX) has called for a policy framework that would require foreign buyers of Ghanaian agricultural commodities to purchase through the exchange rather than sourcing directly from farm gates.
It further notes that according to the GCX, channelling commodity purchases through the exchange will help regulate the agricultural market, improve price stability, increase government revenue, and provide better data for national planning.
Speaking on Joy FM’s Super Morning Show on Thursday, July 23, Joseph Nai Anum, Managing Marketing and Business Development at the Ghana Commodity Exchange, stated one of the major challenges affecting Ghana’s agricultural sector is the competition created by foreign buyers who go directly to farming communities to purchase commodities.
He explained that these foreign buyers often compete with local processors and traders, creating challenges within the domestic agricultural value chain.
“One of the major challenges affecting our agricultural agenda has to do with foreigners who go into our farm spaces or the farm gates to buy commodities,” he said.
“They compete seriously with our local buyers and processors. We believe that if these foreign buyers are regulated and allowed to buy commodities mandatorily through the Ghana Commodity Exchange, it would help stabilise the agricultural space and also stabilise prices.”
Mr Anum stated the GCX’s next major objective is to facilitate the trading of export-oriented commodities such as cashews, shea nuts, and soybeans through the exchange, with support from government policy.
He noted that requiring foreign buyers to trade through the GCX would bring several benefits, including improved tax collection, better price regulation, and enhanced government oversight of commodity flows.
“One of the benefits is that the government will be able to collect taxes after trades from these foreigners. It will also help regulate prices and give sellers and farmers the best prices they can get,” he said.
He added that the system would also provide critical data on the volume of commodities leaving the country, allowing the government to make better-informed decisions on agricultural policies and planning.
“When these foreigners are trading, we get to know how much is being taken out of the country, and the government can use that information in planning within the agricultural space,” he explained.
The Head of Operations at the Ghana Commodity Exchange, Wendy Malm, encouraged farmers, processors and businesses to make greater use of the exchange to improve access to markets, storage facilities, and financing opportunities.
She stated farmers who bring their commodities to GCX warehouses will benefit from secure storage facilities, including insurance coverage to protect their produce.
“We would want to encourage everyone to patronise and use the Ghana Commodity Exchange. For farmers, they can bring their commodities for storage in the GCX warehouses,” she said.
