The National Food Buffer Stock Company (NAFCO) has licensed 14 firms to supply food commodities under its current procurement arrangement, CEO George Abradu-Otoo has revealed.
The selected companies are permitted to buy produce directly from farming communities and transport it to NAFCO warehouses across the country for storage and onward distribution.
Speaking on Accra-based Channel One TV, Mr. Abradu-Otoo said the licensing regime enables NAFCO to work closely with agents on the ground while maintaining proper oversight of the supply chain.
“So far, we’ve licensed about 14 companies. They have their agents. Once you are licensed, you can go to places like Asutsuare to buy rice, deliver it to our warehouse, and provide proof,” he stated.
He explained that commodities delivered by the licensed suppliers undergo inspections before being formally received. Warehouse officials, including storekeepers and regional managers, verify and confirm the items to ensure quality and compliance.
Mr. Abradu-Otoo also outlined how prices are determined, noting that a Price Determination Committee, made up of representatives from the Ministry of Food and Agriculture, the Peasant Farmers Association, the Rice Millers Association, and NAFCO, handles the process.
According to him, the committee relies on research and market intelligence from across the country to reach agreement on pricing. After settling on prices, the proposals are forwarded to the Public Procurement Authority (PPA) for review. The authority may approve the prices or request adjustments before issuing final clearance.
“They give the final authority, and based on that, we announce the prices and proceed,” he said.
Mr. Abradu-Otoo stressed that the framework promotes transparency, accountability, and strict compliance with procurement laws, adding that NAFCO’s current focus is on absorbing excess produce in the market.
“Our main concern right now is the glut,” he added.
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