Minority Chief Whip Frank Annoh-Dompreh has warned that recent cuts in cocoa producer prices are pushing farmers into despair and could fuel cross-border cocoa smuggling if urgent government intervention is not introduced.

In an open letter addressed to President John Dramani Mahama on Wednesday, the Nsawam-Adoagyiri MP said cocoa-growing households are facing severe economic pressure from falling incomes, rising production costs and climate-related risks.

“The recent reduction in the producer price of cocoa has imposed additional economic stress on smallholder farmers at a time of already heightened vulnerability,” he stated.

According to him, cocoa farmers are battling rising input costs, labour constraints and declining real incomes, while the latest producer-price adjustment has worsened conditions in farming communities.

“A downward adjustment in producer prices, without adequate compensatory measures, risks entrenching poverty within cocoa-growing communities and weakening incentives for sustainable production,” he warned.

Mr Annoh-Dompreh argued that the situation extends beyond farmers and now threatens the broader economy because cocoa remains one of Ghana’s key foreign exchange earners.

“Cocoa remains a cornerstone of Ghana’s foreign exchange earnings and rural employment base,” he stressed.

He warned that sustained frustration among farmers could weaken productivity and encourage smuggling across Ghana’s borders.

“Sustained farmer disaffection threatens productivity, encourages smuggling across borders, and undermines confidence in the state’s commitment to equitable burden-sharing during economic adjustment,” he said.

The Minority Chief Whip also accused government of failing to support Licensed Cocoa Buying Companies (LBCs), saying delays in releases are affecting the entire cocoa purchasing chain.

“It is also regrettable to note that even the adjusted price presented by the Government has yet to be accompanied with releases to the Licensed Cocoa Buying Companies (LBCs) who are struggling with liquidity in their business,” he noted.

He said the inability of the buying companies to finance cocoa purchases is leaving vulnerable farmers stranded.

“Since they are unable to engage their Purchasing Clerks to buy cocoa, the brunt of this chain reaction is felt by our vulnerable farmers,” he added.

Mr Annoh-Dompreh further criticised government priorities, arguing that cocoa-growing communities are being neglected despite the sector’s importance to the national economy.

“Unfortunately, the posture of government and its relevant agencies to address this matter, coupled with other government actions such as the recent $10 billion injection in attempt to stabilize the cedi, tells an unfortunate story of government’s priorities to these farming communities,” he stated.

He warned that prolonged producer-price reductions could eventually destroy confidence in cocoa farming and agribusiness.

“Prolonged producer price reductions risk eroding the viability of cocoa farming and general agribusiness,” he cautioned.

The Minority Chief Whip called on President Mahama to immediately introduce income-support interventions to cushion cocoa farmers against the effects of the price adjustment.