Trading of all Soya beans must pass through Ghana Commodity Exchange – Commodity Brokers Association

Source the Ghana Report

The President of the Commodity Brokers Association of Ghana (CBAG), Yaw Ohemeng Kyei, has proposed that all trading soya beans must pass through the Ghana Commodity Exchange (GCX) to prevent or minimise challenges in the soya beans supply chain process in the country .

According to him, a 100kg bag of soya currently sells at a record high of ¢600 at farm gate in Tumu as of the end of November 2022 as compared to a price of ¢180 at the end of March 2020.

He made the call at a sensitization trip to the various farms in the northern sector of the country to assess at first hand the soya beans situation in the country. He was accompanied by the National Vice President, Jeffery Ntorinkansah.

Within the space of two harvest seasons, prices have astronomically risen by 300% and there is no sign of an end to the record astronomical price hikes.

Mr Kyei indicated that the situation is so bleak that soya beans processors in the country pay between 700 and 800 for 100kg bag of soya beans.

Due to this, some factories are unable to even get access to the commodity due to activities of hoardings and influx of some foreign nationals who are engaging in all manner of activities.

“Once trading is done solely through Ghana Commodity Exchange, all these challenges will be eliminated in lieu of fair play”

“We understand foreigners and some Ghanaians still smuggle that commodity through unapproved routes with alleged connivance of some customs officers in blatant and cynical disregard for the ban. At this age and day if customs cannot use technology to enforce the ban, then Customs Division of Ghana Revenue Authority must be privatized”, he added.

.He emphasised that trading in soya beans through the Ghana Commodity Exchange would forestall extreme price hikes since prices are determined scientifically at the exchange.

He thus appealed to government to implement policy directives leading to all soya bean trading activities  to pass through the exchange to ensure structured price standardisation for the market, coupled with structured price discovery and trade fairness.

As part of the solution to the problem, Mr Kyei educated farmers to expand their farms and increase productivity by taking advantage of warehouse receipt system introduced by the GCX which requires no physical asset as collateral for loan.

He further disclosed that CBAG is in discussions with some organisations to pilot agric insurance for soya beans farmers where premium would be paid in kind.

He further urged entrepreneurs, professional groups, Ghana Prison Service, Ghana Army  and religious organisations to venture into commercial soya beans farming by taking advantage of warehouse receipt financing and warehouses offered by GCX in addition to guarantee soya bean off-takers and ready market offered by CBAG

He stressed that CBAG is currently developing a forecasting reference database that will assist markets in planning their soya bean purchase ahead of time.

CBAG is a value-chain network-based association that represents all stakeholders in the agribusiness industry including farmers, farmer groups, licensed exchange practitioners, aggregators, logistics service providers, importers, exporters, retailers, support service providers, input suppliers, researchers, agricultural cooperatives,  academic institutions, and all other persons or organisations with agribusiness interest.

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