News | Ghana Commodity Exchange

GHANA COMMODITY EXCHANGE HOLDS SORGHUM MARKET COUNCIL MEETING

Date : 16th Jul, 2019


GHANA COMMODITY EXCHANGE HOLDS SORGHUM MARKET COUNCIL MEETING image


GHANA COMMODITY EXCHANGE HOLDS SORGHUM MARKET COUNCIL MEETING

 

 

In fulfilment of its remit to advance the agenda of agricultural growth in Ghana, the Ghana Commodity Exchange is always exploring the processes and avenues through which it can introduce new commodity contracts for trading on its electronic platform.

One such commodity is sorghum and as part of the process to introduce the trading of sorghum onto the Ghana Commodity Exchange (GCX), a consultative meeting was held with market actors in the sorghum Industry to discuss and agree on the draft sorghum contract prepared by the GCX. This meeting was held on the 2nd of July, 2019 in the conference room of the Central Hotel at Ridge in Accra. The meeting was attended by a number of stakeholders from across the sorghum value chain.

As part of the agenda, a brief overview of GCX was given, followed by a discussion on the draft Sorghum Contract prepared by GCX and a presentation on GCX Membership.

Generally, the draft contract was well accepted as representing what pertains in the industry. A few points were raised in response to the contract one of which was that the production of Sorghum is more wide-spread in the Upper East region and therefore it would be good for GCX to site a warehouse close by preferably in Bolga, Garu and Bawku West. It was also suggested that GCX acquires warehouses within the sorghum growing communities and districts for easy aggregation and also to ensure that farmers don’t travel far to deposit their grains. This they said would reduce transportation and handling cost. There was also a debate by the participants on whether Red and mixed Sorghum should be added to the contract and traded on the exchange or taken off.

These suggestions were taken on board; with plans in motion for the Exchange to add on more warehouses in the upper East region and possibly acquire some district and community warehouses, while the decision was taken to trade only White Sorghum initially.

The market council meeting on sorghum was a successful event with a lot of positive ideas interchanged between market actors and GCX staff, geared towards developing the value of Ghana’s sorghum chain.