Ghana Cocoa Board is assuring stakeholders in the cocoa industry, especially farmers that sufficient funds have been released to qualified Licensed Buying Companies (LBCs) to purchase cocoa for the 2016/17 cocoa season.

According to a statement issued by COCOBOD, the seed funds that have been released to the LBCs for cocoa purchases are on revolving basis, which means that the LBC; are given specific amounts based on their bank guarantees.

COCOBOD adds that it’s only after they have purchased and delivered quantity of cocoa equivalent to the amount released that additional funds are disbursed for cocoa purchases.

"Therefore, rumours being peddled within the Ghanaian cocoa fraternity, especially among our cherished farmers, that funds for cocoa purchases are unavailable are totally false," the statement said.

However some Licensed Buying Companies are challenging the claims of COCOBOD.

Some to them tell JOYBUSINESS, they still don’t have enough funds, for the purchase of beans from farmers.

One of the companies for instance told JOYBUSINESS that “we requested for about GH¢300 million and COCOBOD has just give us about GH¢80 million”.

Another company that’s does not want to be named says “ it’s unfortunate that we are not getting the required funds, because this is  the time that we need to by beans from the farmers”. 

Some of them also want the regulator to review the current system, where they have to pre-finance the purchase of cocoa beans.

But a source close to COCOBOD tells JOYBUSINESS they will not review it, because they want to prevent the situation when most of these loans are not paid back on time and also when some of these licensed buying companies divert the funds to other areas.