The General Agricultural Workers’ Union (GAWU), affiliated to the Ghana Trades Union Congress (TUC), says it is happy that the 2016 budget seeks to address the declining performance of the crop sub-sector, by allocating a substantial amount to fertiliser and mechanisation.
Growth in crops sub-sector of agriculture declined from 5.9 per cent in 2013 to 3.6 per cent in 2014.
Thankfully a total of GH¢355.14 million has been allocated to the agricultural sector, out of which about GH¢302.46 million, representing 85.17 per cent, is to be spent on the Fertiliser Subsidy Programme (FSP) and the Agricultural Mechanisation Service Centres (AMSECs).
Commenting on the 2016 allocation to the agric sector, the Deputy General Secretary of GAWU, Mr Edward Kareweh, said though the crop sub-sector was not explicitly stated, “the fact that much of the allocation is going into fertiliser and mechanisation also means the overall performance of agric would improve because within the sector, the crop sub-sector has weight and so what happens there has a significant impact on the overall performance of the sector.”
He said that the policy, if implemented to the latter would bring back the fortunes of the sector.
“What we need to emphasise is that implementation must take place. Most often there is a huge gap between what has been allocated and what is spent at the end of the year. Targeted sub-sectors within sector must be adhered to strictly,” he said.
He cited tax exemption to companies that go into agro-processing in the first five years as a complementary policy that would induce a large number of entrants into the agro-processing business.
“It will eliminate the glut and create ready market. Sometimes it is also the complementary policies that actually undermine or prop up a particular major policy,” he said.
Caution
Mr Kareweh however advised on the need to deal with other policies that counter or undermine the effect of the new agriculture policy.
“For instance if we don’t do much about unbridled importation of cheap agriculture produce, that will actually take over the whole domestic market and create a huge loss for producers within the crop sub-sector. So we should watch out for those counter unproductive policies and address them so that we can have the full import of the budget,” he said.
2015 expenditure on agric
Total budgeted expenditure for the agriculture sector in 2015 was GH¢395.19 million. By the end of September 2015, GH¢91.54 million had been spent and about GH¢82.57 million of this actual sector expenditure, representing 90.21 per cent, was spent on poverty focused expenditures such as the FSP and the establishment of AMSECs, among others to boost agricultural production.
In 2016, however, 50 tractors with the requisite components will be procured to support the AMSECs.
In the same year, 90,000mt, out of a target of 180,000mt of fertiliser was procured and distributed to farmers nationwide and is expected to increase the use of fertiliser in the country and also enhance crop production especially in the Northern Sector where soil nutrients are low.
Again, in compliance with the Plant and Fertiliser Act, 2010 (Act 803), the ministry in collaboration with relevant stakeholders analysed 11 out of 60 newly introduced fertiliser samples. Out of the 11 samples analysed, only four met the technical and regulatory requirements.
In 2016, the remaining 49 fertiliser samples would be analysed in order to ensure good quality fertilisers and increased productivity.
State of agriculture
Agriculture grew at negative 0.1 per cent between April and June 2015. The livestock sub-sector recorded a year-on-year growth rate of 13.4 per cent, while crops and cocoa sub-sector declined by negative 5.6 per cent.
Experts say the place of agriculture could be determined by fist looking at its overall contribution to Gross Domestic Product (GDP) and that of other sub-sectors.
Currently, Ghana’s economy is considered an agrarian one, with much of the labour force, almost two-thirds being in the agriculture sector. Data further reveal that more than 70 per cent of the rural population is into agriculture.GB
writer’s email: ama.baafi@graphic.com.gh
Pull Quote
Most often than not there tend to be a huge gap between what has been allocated and what is spent at the end of the year. Targeted sub-sectors within sector must be adhered to strictly.
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