Government has increased the produce price of cocoa by 11.4%

A 64kg bag of cocoa, previously sold at Gh¢425, will now be sold at GHc475.00, an 11.46% increase, representing a 77.45% increment of the net of the FoB [Free on Board].

The Deputy Minister of Finance, Ato Casseil Forson made the announcement at the celebration of the International Cocoa Day at Tepa, in the Ahafo Ano North District of the Ashanti region, under the theme, “Transforming the cocoa sector for economic growth- The role of the youth.”

The Minister, who doubles as the Chairman of Producer Price Review Committee, said the new price takes effect from October 1, 2016.

According to Mr. Forson, “last year, the average FoB per tonne of cocoa sold was US$2,900, and this year the average FoB is $2,950 per tonne. The producer price of cocoa has been reviewed from ¢6,800 per tonne to ¢7,600 pee tonne for 2016/2017.”

The Deputy Minister assured the farmers that, “government shall continue the Stabilization Fund with annual contributions from the FoB price as a risk mitigation mechanism against declines in international cocoa prices.”

He said government will “continue with the fund so as to be able to cushion farmers, should the world market price begin to decline as we move into the future.”

Meanwhile, some farmers of Cocoa in the Ashanti Region, present at the celebration, have expressed disappointment in government over the increase, saying it did not meet  their expectation.

They said they had expected an increase from the current ¢425.00 of one 64kg bag to over ¢500.00.

According to them, their expenses still outweigh their gains.