GSS sees investment potential in ginger price surge

The sharp rise in ginger prices is creating new investment opportunities across Ghana’s agricultural value chain, with the Ghana Statistical Service (GSS) urging farmers, processors and investors to take advantage of growing demand for the crop.

Ginger recorded year-on-year inflation of 111.3% in July 2026, making it the highest-inflation item in the Consumer Price Index and the third-largest individual contributor to food inflation, according to data from the GSS.

Government Statistician Dr Alhassan Iddrisu said the surge in ginger prices was being driven by strong demand and supply-side constraints, creating potentially attractive returns for domestic producers and commercial farmers.

Speaking at the July Consumer Price Index and inflation release in Accra, Dr Iddrisu said ginger’s long production cycle, limited cultivation areas and growing demand from the pharmaceutical and beverage industries were among the factors contributing to the sharp increase in prices.

He also cited transport delays, poor rural road networks and inadequate storage infrastructure as constraints affecting the movement and availability of the crop.

According to him, expanding ginger cultivation alongside staple crops such as maize, cassava and plantain could allow farmers to diversify their incomes while responding to market demand.

The GSS also identified opportunities beyond production, particularly in logistics and post-harvest infrastructure. Dr Iddrisu said aggregators, transport operators and logistics companies could invest in more efficient farm-to-market distribution systems to address supply chain bottlenecks.

Investment in cold storage and warehousing could also help reduce volatility by allowing businesses to manage periods of excess supply and shortages, while improving the availability of ginger throughout the year.

The growing demand for processed ginger products could further increase the value generated within the sector.

“The sustained demand for ginger opens room for agro-processors to move into ginger powder, packaged pastes, essential oils, beverages, and dried exports – products that can capture greater value in both local retail and international export markets, while cushioning the sector against the perishability of raw produce,” he said.

The General Agricultural Workers’ Union (GAWU) has also backed the GSS assessment, describing the surge in ginger prices as an opportunity for players across the value chain to scale up production and develop larger plantations.

Dr Paschal Ajongba Saviour Kaba, Deputy General Secretary of GAWU, said government support would be critical if farmers are to respond effectively to the growing market opportunity.

Speaking to the Ghana News Agency, he called for deliberate measures to improve access to agricultural finance, including subsidised interest rates for farmers.

He argued that commercial lending rates remain too high for most agricultural businesses, particularly given the risks associated with farming and inadequate insurance coverage.

Dr Kaba said low-cost lending models similar to those used in countries such as China could help unlock greater investment in agriculture. He also called for a review of the mandate of institutions such as the Agricultural Development Bank (ADB) to restore their focus on providing affordable and tailored financing to farmers.

“The government must increase its interest in agriculture and not make the sector reliant mainly on private capital and invest in agricultural manpower and extension services so that producers will have the technical know-how to boost yields,” he said.

Dr Kaba noted that ginger’s seven-to-nine-month gestation period means production cannot respond immediately to sudden increases in demand. He added that high rainfall in parts of the Bono and Ashanti regions also affects the pace at which supply can be expanded.

He further explained that growing demand from beverage, pharmaceutical and alcohol-producing companies has encouraged some farmers to sell directly to processors under input-credit arrangements rather than through conventional open markets.

According to him, this has contributed to continued pressure on prices and reinforces the need for large-scale investment in plantation agriculture.

Dr Kaba called for the development of commercial-scale plantations for key agricultural commodities, supported by affordable financing and infrastructure, pointing to neighbouring Côte d’Ivoire as an example of how such approaches can be used to strengthen agricultural production.

“If government supports with targeted credit and infrastructure, Ghana can turn this scarcity-driven price boom into sustainable export and industrial growth, while helping bring food inflation down,” he said.