Cocoa farmers across Ghana are raising strong objections to the government’s recent announcement of a 63% increase in the producer price of cocoa, claiming the actual benefit to their earnings is far lower than advertised.
According to the farmers, the increase, which raises the price from $3,100 to $5,040 per tonne, amounts to only a 4% net gain after factoring in market realities and currency depreciation.
The announcement was made by Finance Minister Dr. Cassiel Ato-Forson, who insisted the increment is in fulfillment of President John Dramani Mahama’s pledge to ensure cocoa farmers receive 70% of the Free On Board (FOB) value of cocoa exports.
“This increase in the producer price represents 70% of the gross FOB value of $7,200 per tonne,” Dr. Ato-Forson said at a press briefing on Sunday, August 4. “It reflects this government’s unwavering commitment to Ghana’s hardworking cocoa farmers.”
But many farmers say the government’s math doesn’t translate to real-world relief. They argue that despite the dollar-value increment, the weakening of the Ghana cedi and inflation have significantly eroded their actual earnings.
Meanwhile, the Minority in Parliament is taking the government to task over what it describes as a “deceptive price announcement.”
Speaking to journalists, Ranking Member on the Finance Committee, Kojo Oppong-Nkrumah, challenged the government’s claims, arguing that the figures are misleading.
“We’ve done the numbers,” he said. “If you compare the old price of a bag of cocoa in cedis to the new price, the difference is only about GH₵128. That’s roughly a 4% increase, not 63%.”
“The NDC [National Democratic Congress] always finds ways to present half-truths,” he continued. “The real question is what farmers take home not what government says they’re giving.”
Kojo Oppong-Nkrumah added that farmers on the ground remain disappointed, stating, “Go and ask the farmers they’ll tell you this is not what they were promised.”
Industry analysts also warn that unless pricing mechanisms are tied directly to domestic inflation and currency fluctuations, announced increases in dollars may mean little to farmers whose transactions are cedi-based.
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