According to GGC, Government has introduced 5700 Dalasis per metric ton as price subsidy for the purchase of groundnuts during the 2020 / 2021 trade season.
This gives the impression that the GGC is buying groundnuts at a loss and Government is putting 5700 dalasis in the hands of the farmers that they have not earned.
Foroyaa would want this mindset to be changed. The fact that private Chinese companies are paying up to 26000 dalasis per metric ton of groundnuts confirms that farmers are not being subsidised.
The world market price for shelled groundnuts is far above the producer price in the Gambia. Foroyaa will show the huge gap between the world market price and the producer price of groundnuts. Groundnut consumption has been growing. China and India have become the largest consumers and exporters of groundnuts.
Hence, companies are cashing on buying at low prices in countries like the Gambia in order to reap more from the world market. We are yet to develop the knowledge base to protect our farmers.