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Cocoa producers have welcomed the government’s decision to increase the producer price of cocoa by 28%.
Speaking on Newsnight on Joy FM, the president of the Ghana National Cocoa Producers Association (GNCOFA) stated that although this was not the amount they expected, the increase is better than nothing.
“We expected around ¢ 1000 cedis per bag but we like it and we are very grateful for what [the President] has done, ”Stephenson said Anane Boateng.
He told the host, Emefa Apawu, that the money they were expecting was in consideration of their pension and welfare plans. However, they believe that the recent increase is a step towards the intended goal.
“Last year [the President] He did a little bit and this year also so gradually that it is going up. So we like it, ”she added.
Ghana’s cocoa will now sell at ¢ 660 per bag (64 kg) for the 2020/2021 harvest season from GH ¢ 514 last season.
This price increase has caused the price of a ton of cocoa to go from ¢ 8,240 to ¢ 10,560 cedis.
In making the announcement, President Akufo-Addo stated that the increase is due to the government’s efforts keeping up with Ghana’s commitment under the international agreement with Côte d’Ivoire to establish a fixed Life Income Differential of $ 400 per ton of cocoa to alleviate poverty for farmers.
Living Income Differential ensures that the practical price increase is paid to farmers.
Speaking at a meeting in Sefwi-Wiawso, in the North West Region on Thursday, the president added that it is also the government’s intention to reward farmers for their work.
He said that “with this substantial increase in producer price we are also delivering on our promise to generously reward the hard work of our cocoa farmers and their contribution to the Ghanaian economy over the decade.”
President Akufo-Addo said the increase will take effect on Thursday, October 1.
He reiterated the government’s commitment to ensuring that the industry receives the necessary attention and gets its fair share of the national pie.
