The Majority in Parliament has thrown its weight behind the government’s latest reforms in the cocoa sector, describing them as the most prudent and strategic measures needed to reset and transform the industry.

According to the caucus, the policy decisions, which see a 28 per cent reduction in the farmgate price of cocoa, are not arbitrary but grounded in data, market realities and regional dynamics.

Addressing journalists, Chairman of the Food, Agriculture and Cocoa Affairs Committee, Godfred Seidu Jasaw, said the price adjustment was partly influenced by prevailing rates in neighbouring cocoa-producing countries to prevent reverse smuggling into Ghana.

He explained that maintaining a higher price than surrounding countries could create incentives for traders to smuggle cocoa into Ghana to take advantage of the premium.

“We also thought that because surrounding countries were selling at lower prices, there could be reverse smuggling,” he said.

“If you maintain or even increase prices here, then there is the possibility of a scheme to bring in more cocoa from neighbouring countries to sell in Ghana at higher prices. All these factors exist.”

Dr Jasaw said the reform package announced by the government reflects careful analysis of production data and purchasing trends for the current season.

• Read also: Gov’t sets new farmgate cocoa price at GH₵41,392 per tonne for 2025–2026 season

He disclosed that the government projected to purchase about 600,000 metric tonnes of cocoa beans this year, out of which approximately 530,000 metric tonnes have already been bought.

“If you are dealing with data, per the projections and recent trends, it means the cocoa beans left in the field are not more than 70,000 metric tonnes,” he explained.

“So it is actually wise that you reduce the producer price for the rest of the 70,000 yet to be mopped up.”

He rejected claims that all cocoa beans produced this season would be affected by the reduced price, describing such assertions as inaccurate.

“When my colleagues create the impression that all cocoa beans produced this year are going to be shortchanged and that every bag will sell at 2,570, that is inaccurate,” he said.

Dr Jasaw further argued that the new pricing structure could even attract more buyers back to Ghana, given the global reputation of Ghanaian cocoa.

“The buyers who didn’t find Ghana’s price attractive and had to go to neighbouring countries will now relocate to Ghana in response to this new price because they already know that Ghana cocoa is premium. They actually prefer Ghana cocoa,” he noted.

The Majority also assured cocoa farmers of continued government support aimed at boosting productivity and stabilising the sector.

Dr Jasaw said Licensed Buying Companies (LBCs) have been directed to settle outstanding payments owed to farmers, with COCOBOD expected to release funds to facilitate those payments.

“Cocoa Board will pay the LBCs, and you will be paid,” he assured farmers.

“Your cocoa beans that are still with you, don’t be afraid. These cocoa beans will be bought and evacuated.”

He acknowledged that the remaining unsold cocoa is significantly smaller compared to what farmers have already sold, urging them to cooperate with the government as reforms take effect.

The government, he added, will intensify support in the next production cycle through the supply of free fertilisers, the continuation of the free mass spraying programme and other productivity improvement interventions.

“We are coming in with free fertilisers, free spraying and free productivity improvement programmes for you,” he said.

• Read also: Gov’t orders immediate payment to cocoa farmers, plans new COCOBOD bill

“What you experienced this year, you are not going to experience next year.”

Dr Jasaw assured that Parliament would exercise strict oversight to ensure that inputs reach the intended beneficiaries.

“We will follow this and make sure that inputs get to the right farmers. Be rest assured, with that environment, it will help the growth of your industry,” he stated.

The Majority insisted that while the price reduction may be difficult in the short term, the broader reform agenda is designed to safeguard Ghana’s premium cocoa status and secure long-term sustainability for farmers and the industry as a whole.

Background

Finance Minister Dr Cassiel Ato Forson announced a revised cocoa producer price aimed at cushioning farmers against the recent decline in global cocoa prices.

Speaking during a press briefing on Thursday, February 12, Dr Forson disclosed that the Producer Price Review Committee (PPRC), under his chairmanship, convened earlier in the day to assess the challenges facing the sector and to review the producer price for the remainder of the 2025–2026 crop season.

In order to mitigate the impact of falling international prices, the PPRC recommended that farmers receive 90% of the achieved gross Free on Board (FOB) price of USD 4,200 per tonne.

"The PPRC has recommended that the farmer be paid 90% of the achieved gross fob of USD 4,200 per tonne," he said.

As a result, the committee has set the new producer price at GH₵41,392 per tonne, equivalent to GH₵2,587 per bag, effective immediately