The Minority Caucus in Parliament has accused the ruling New Patriotic Party administration of shortchanging cocoa farmers and reneging on promises made to support them while in opposition.
The Caucus in a press release issued by its Ranking Member on the Parliamentary Select Committee on Food, Agriculture and Cocoa Affairs, Honourable Eric Opoku condemned the government’s failure to adequately compensate cocoa farmers amidst soaring international cocoa prices.
The Member of Parliament for Asunafo South described the recent increase in cocoa price by the Ghana Cocobod as a “rip-off” against the hardworking farmers who form the backbone of the country’s economy.
According to the statement, the recent surge in the world market price of cocoa to a historic high of US$10,000, which is equivalent to GH¢130,000 as against the government’s recently announced producer price of GH¢33,120 per ton, or GH¢2,070 per bag constitutes a mere 25.47% of the international market price per ton.
“The Minority in Parliament issued a press statement demanding an immediate increase in the producer price of cocoa to ameliorate the plight of Ghanaian cocoa farmers.
“This demand was predicated on the recent surge in the world market price of cocoa to an all-time high of average, US$10,000 per ton, which is equivalent to GH¢130,000, at a conservative exchange rate of US$1 to GH¢13. This amount translates into GH¢8,125 per bag of cocoa on the international market”.
Hnorable Eric Opoku, MP Asunafo South
He strongly asserted that the increase of GH¢33,120 per ton, or GH¢2,070 per bag, producer price of cocoa by the ruling government falls drastically short of the international market price.
Furthermore, Honorable Eric Opoku, the Ranking Member on the Parliamentary Select Committee on Food, Agriculture and Cocoa Affairs posited that per the increment of the cocoa price in the international market, the cocoa farmers in the country should receive a minimum of 70% of the international market price as a farm-gate price.
He noted that the current increase in the producer price of cocoa, which constitutes a trifling 25.47% of the international market price, contradicts an earlier pledge by President Akufo-Addo to give Ghanaian cocoa farmers a farm-gate price constituting a minimum of 70% of the international market price.
According to him, such failure on the part of President Akufo-Addo and the New Patriotic Party administration amounts to a betrayal of the hardworking farmers who contribute significantly to the country’s economy.
Moreover, the Minority Caucus in its statement expressed dismay at what it perceived as a pattern of exploitation and neglect by President Akufo-Addo and Vice President Dr Mahamudu Bawumia’s administration, accusing them of swindling Ghanaian cocoa farmers.
The Member of Parliament for Asunafo South, Honorable Eric Opoku pointed out that the situation is particularly dire considering the sharp decline in national cocoa output, plummeting from 969,000 metric tons in 2016 to a meagre 450,000 metric tons in 2024.
He argued that the Minority Caucus in Parliament hold the view that any increase in the farm-gate price of cocoa below 60% of the prevailing international market price or below GH¢5,000 per bag is grossly unfair and unacceptable and is a monumental rip-off of cocoa farmers.
The Honorable Eric Opoku concluded his statement by vowing that the Minority Caucus in Parliament shall hold the Minister for Agriculture accountable for what it deemed as “broad daylight robbery” against cocoa farmers in the counntry.
Additionally, Honorable Eric Opoku announced plans by the Caucus to engage cocoa farmers and industry stakeholders to chart a way forward for Ghana’s cocoa industry, which according to him is on the brink of collapse.
Cocoa Price Increment
The Government of Ghana in a move which it described as bolstering the livelihoods of cocoa farmers and responding to the upward trend in international cocoa prices, announced a significant increase in the Producer Price of cocoa for the remainder of the 2023/24 cocoa season.
The increment which took effect from Friday, 5th April 2024, according to the Ghana Cocobod raised the producer Price of cocoa from GH¢20,928 per tonne to GH¢33,120.00 per tonne, translating to GH$2,070 per bag of 64 kg gross weight.
The Chief Executive Officer of the Ghana Cocobod, Joseph Boahen Aidoo in a statement indicated that the decision to augment the Producer Price of cocoa underscores the government’s commitment to uplifting the income levels of cocoa farmers in alignment with the overarching vision of the ruling New Patriotic Party (NPP).
He noted that the administration, led by His Excellency Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana, has prioritised the welfare of cocoa farmers since assuming office in 2017.
Remarkably, Mr Aidoo argued that under the stewardship of President Akufo-Addo, the Producer Price of cocoa has witnessed a remarkable ascent, surging by an impressive 336% from GH¢7,600 per tonne in the 2016/17 cocoa season to the current unprecedented level of GH¢33,120 per tonne for the remainder of the 2023/24 cocoa season.
He further stated that such a substantial increase is a testament to the government’s unwavering dedication to the prosperity of Ghana’s vital cocoa industry and the farmers who form its backbone.
In addition to the elevation of the Producer Price, the Chief Executive Officer of Cocobod stated that the government has also approved a revision of the Buyers’ margin to GH¢2,980.00 per tonne for the remainder of the 2023/24 cocoa season.
He also argued that such an adjustment aims to mitigate the impact of increased finance costs on Licensed Buying Companies (LBCs) resulting from the augmented Producer Price of cocoa.
Mr Aidoo concluded his statement by stressing the government’s steadfast commitment to the welfare of cocoa farmers and the sustainability of the cocoa industry as a whole.
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