The Ghana COCOBOD has told Joy Business government is considering an increase in the farmgate prices of cocoa beans for farmers.

The decision, which is currently being deliberated upon by stakeholders in the cocoa sector is targeted at improving farmers’ wellbeing, as well as reduce illegal movement of cocoa beans to neighboring countries.

The reason for this move, according to COCOBOD is to help stop smuggling to neighboring countries, particularly Ivory Coast which has announced a 100 percent increase in farmgate prices, following a surge in global prices of the commodity.

Already, Bloomberg is predicting government may announce above 50 percent increase in the prices for farmers.

According to Bloomberg, If Ghana, which is the world’s second-biggest producer of the chocolate ingredient should proceed with the pay boost, it would mark the first time that the country will raise farmers pay twice during the main crop season, which started last September and ends on June 30.

Government has already raised the rate by 63.5 percent to 20,928 cedis a ton at the beginning of the period.

Bloomberg analysis shows that Cocoa futures in New York soared to multiple records in recent months after bad weather and disease hurt output from Africa.

The rush to secure supplies first pushed prices higher, but futures have now more than doubled this year as margin calls and forced buying put traders under stress. 

The analysis also said the spike in wholesale markets means the share received by Ghanaian farmers has dwindled to 16% from 44% seven months ago, when the government last updated the farmgate price. Even if farmer pay doubles, it will remain far below levels on the world market.