Former President, John Dramani Mahama, has described the new cocoa pricing by the New Patriotic Party (NPP) government as “smoke and mirrors”.

According to him, the new pricing is nothing but deception. He revealed that the just-announced increase in the farm-gate price of cocoa by government is a “rip-off”.

Mr Mahama stated that the new pricing acts as a detriment to hardworking cocoa farmers and their families who continue to sustain the country’s economy through their toil.

“NPP’s Cocoa Pricing, Smoke and Mirrors… With the international market price of cocoa surging to a 46-year record high of $3,600, government should have given our cocoa farmers their fair share of the international FOB price.”
John Dramani Mahama

Contained in a statement dated today, September 11, 2023, Mr Mahama noted that sadly, government has chosen to give these farmers a paltry sum of GH₵1,308 per bag, which constitutes only 52.7% of the FOB Price of the product on the international market.

This, he explained, is unfair to these cocoa farmers who have been worse off since the NPP took over the reins of government in 2017.

“In 2016, my government, in addition to the free fertilizer and free cocoa seedlings programme, gave cocoa farmers 66.06% of the FOB Price of cocoa.”
John Dramani Mahama

Further criticizing the NPP government for the unfair treatment being meted out to farmers, Mr Mahama stated that the NPP administration should have built on the NDC’s robust foundation. However, he highlighted that government has rather increased the operational expenses of COCOBOD and reduced the international FOB share for the farmers.

To this end, he emphasized that “cocoa farmers certainly deserve better”.

Cocoa farmers lament new price increment

Meanwhile, secretary of the national cocoa farmers association, Johnson Asante, has lamented the new pricing for cocoa announced by the President. He revealed that farmers expect some GHC3,000 as the new price.

“We have heard about it but we don’t believe in rumors that the cocoa price has been increased to GHC1,308. For myself and my members, we are not happy about it because if cocoa price on the world market is $12.99 per pod, it is unfathomable for us to be given that amount.
“We cultivated the crop on our own lands… If I had my way, the price should be increased to GHC3,000 per bag.”
Johnson Asante

It will be recalled that President Akufo-Addo announced a new producer price of cocoa for cocoa farmers, at an event at Tepa, in the Ashanti Region.

He indicated that the international market is beginning to pick up, and government, in keeping with its promise to cocoa farmers, has increased cocoa prices from GH¢12,800 per ton, to GH¢20,943 per ton, and GH¢1,308 per bag.

To this end, the President revealed that the price is 70.5% of the Gross FoB price, which is equivalent $1,821 per ton.

The increment of cocoa prices comes after cocoa farmers intensified calls for an upward review of cocoa prices. As such, the move is to prevent the prevalence of smuggling and the situation where cocoa farmers give out their lands to illegal miners.

Moreover, President Akufo-Addo expressed confidence that the new policies being put in place will help improve the cocoa sector.

He further emphasized that the sustainability of the entire industry hinges on the producer being willing to invest in business and be certain that government repays the appropriate price.