Government intends to address the challenges in the agricultural sector by accelerating the modernisation and development of agriculture, Dr Kwabena Duffour, Minister of Finance and Economic Planning, said on Thursday.
Presenting the 2011 Budget statement to Parliament in Accra, Dr Duffour noted that government aimed at raising productivity and
increase production and would therefore establish Agricultural Mechanisation and Service Centres (AMSEC) throughout the country.
Government would also support the private sector to build capacity in the local production and assemble of appropriate and affordable agricultural machinery, tools, and other equipment.
This, he said would be achieved through the machinery hire purchase and lease schemes with backup spare parts for all machinery and equipment to improve farmers' access to appropriate farming equipment and machinery.
"Support would also be given to the private sector to produce and use small-scale multi-purpose machinery and equipment,including farm level storage facilities, appropriate agro-processing machinery and equipment while fully implementing intermediate means of transport (IMTs)," Dr Duffour said.
Other key projects and programmes to be implemented in the sector, the Finance Minister said included: the inland valley rice development project, Afram plains district agricultural development project, export marketing and quality awareness project, Northern rural growth programme, promotion of perennial crops (rubber and oil palm), rice sector support project and the out-grower value chain fund project phase one, in addition, Dr Duffuor said the block farming project, the youth in agriculture programme, and the fertilizer subsidy programme would continue.
On the cocoa sector, Dr Duffuor said, an amount of GH�104.4 million would be spent on the Cocoa Diseases and Pest Control Programme (CODAPEC) to mitigate the risks associated with the incidence of diseases and pests that attacked cocoa.
Ghana Cocoa Board (COCOBOD) would spend GH�10.2 million to intensify the treatment and control of cocoa swollen shoot virus diseases.
The Finance Minister said Government would continue to implement policy measures to enable the cocoa sub-sector contribute significantly to the growth of agricultural GDP.
Among the interventions that would take place in the cocoa sub -sector in the 2011 fiscal year are the fertilizer subsidy policies which would be harmonised between the Ministry of Food and Agriculture and COCOBOD during the year.
Dr Duffuor said about GH�140.5 million had been set aside for the Cocoa Hi-tech Programme which would ensure that appropriate cocoa fertilizers were available at the right time for use by farmers.
Another plan for the cocoa sub-sector is the Special Housing Scheme for cocoa farmers which would be supported with GH� 868,000.
The rehabilitation and tarring of selected roads in the major cocoa growing areas would therefore continue in 2011.
For the 2009/2010 cocoa crop year, GH�20 million has been set aside to complete roads under the Cocoa Roads Improvement Project (CRIP).
He pointed out that the Cocoa Farmers Pension Scheme would commence in 2011 with an initial capital of GH�9.3 million.