Government has reviewed upwards the producer price for cocoa at a ceremony to commemorate this year's national cocoa day in Tepa in the Ashanti Region.

The new price will go for GHS 475.00 per bag, 50 cedis higher than what it was previously sold for.

This was announced Saturday, by the Deputy Minister of Finance  Ato Forson who is also Chairman of Producer Price Review Committee after a meeting Saturday.

Mr Forson said the new price takes immediate effect.

"Last year the average FOB per tonne of cocoa sold was $2900 and this year the average FOB to be sold and in some cases have been sold forward is $2950" he said.

On how much a tonne of cocoa will be sold for in Ghana, the minister said the prices have been increased from ¢6800 per tonne to ¢7600 per tonne for the 2016-2017 cocoa season.

This amount represents an increase in price of ¢800 per tonne or 11.76% increase.

The increase will come as a welcome news for cocoa farmers who have been clamoring for a hike in prices.

The minister  charged the License buying companies to ensure that the farmers are paid the new price at the point of sale.

Cocoa has been a major foreign exchange earner for the country and rakes in millions of dollars in revenue.