Government has increased the price at which it will purchase a tonne of cocoa from farmers by 21 percent.

With this increase, a tonne of cocoa will now be sold at 6,720 Ghana cedis from 5,520, while a 64 kilo bag of cocoa will be sold at 420 Ghana cedis. 

The increase can be attributed to favorable prices of cocoa on the international market. 

Farmers will also be getting 5 Ghana cedis as bonus for every 64 kilo bag of cocoa sold.

Government in consultation with stakeholders, has also set up a stabilization fund with annual contribution from the FOB price (Freight on Board) as a risk mitigating mechanism against declines in the international cocoa prices. 

The primary objective of the fund is to sustain the earnings of cocoa farmers in challenging times like was experienced during the 2013/14 season.

Government has also approved other rates and fees for all stakeholders in the industry including the buyers' margin, warehousing and internal marketing cost as well as fees for disinfestation.

Chief Executive of the Ghana Cocoa Board, Dr.  Stephen Opuni said the increase will go a long way to prevent smuggling.

On his part Deputy Minister of Finance, Ato Forson said the increase will go a long way to motivate the farmers to help meet government target of about 900 thousand metric tonnes.