Resuscitating a dying PFJ: Stop the subsidies on fertilisers – Franklin Cudjoe tells gov’t
Founder and President of IMANI-Africa, Franklin Cudjoe, has said the Food and Agriculture Minister’s admission of the Planting for Food and Jobs (PFJ) programme being on life support is an indication that urgent measures are required to resuscitate the policy.
The Minister, Dr Owusu Afriyie Akoto, has expressed worry over the sustainability of the policy owing to the large debt government owes partners of the programme.
He said importers of fertiliser under the PFJ were under siege by their financiers because out of GH¢940 million owed dealers in fertiliser and other subsidies since the beginning of last year, government has been able to pay only GH¢250 million.
The “precarious” nature of the prospects of the programme according to the minister is as a result of the high indebtedness to the fertiliser producers and importers, who have defaulted with their banks and had to pay penalties on their letters of credit.
In an exclusive with Ghanasonline.com, Mr. Cudjoe underscored the provision of fertiliser subsidies by government as the major problem hampering the policy.
He explained the subsidies have always benefited middlemen who never work but capitalises on the initiative to cash in on poor farmers.
The policy think tank head indicated the fertilisers are either hoarded and resold at a higher price to local farmers or smuggled out of the country for sale.
“The Middlemen — those in charge of distributing the subsidised fertilisers– they mostly hoard and sell them at market prices or simply smuggle them across the border for same,” he told Ghanasonline.com.
He had earlier expressed shock about the worrying local food inflation due to the development, with concerns on how government’s failure to implement its taxation to production policy, is contributing to the menace.
“Planting for Food and Jobs. Agric. Minister confirms program is on life support. Subsidies on fertiliser have always benefited middlemen. They never work!”
“Also rising import taxes on Agriculture inputs defeats the promise by government, that it intends to move us from taxation to production. Local food inflation is worrying. Planting for Food and Jobs should not die- It must succeed,” a post sighted on Franklin Cudjoe’s social media handles read.
In order to assuage the situation, Mr. Cudjoe has advised government to “disband the subsidy programme and reduce import duties on all agricultural inputs and let farmers buy their inputs from anywhere.”
Government, he added, can reduce the taxes on agricultural inputs to bring the prices down, so that farmers can procure them at a reduced market price.
He noted the implementation of the above for all inputs wouldn’t necessitate subsidisation of inputs by the government, which would subsequently eradicate the pilferage.
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