The General Agricultural Workers’ Union of Ghana (GAWU) has urged the government to increase the farmgate price of cocoa beans to enhance Ghana's competitiveness in the global cocoa market.

The call for a price adjustment comes in the wake of rising cocoa smuggling incidents, which have raised concerns among industry stakeholders about the impact on the local economy.

Recently, the anti-cocoa smuggling taskforce of the Ghana Cocoa Board, in collaboration with national security operatives, arrested a driver and his mate for attempting to smuggle 100 bags of cocoa beans at Old Akrade in the Asuogyaman District.

This incident underscores the growing challenges faced by the cocoa sector, prompting GAWU to advocate for measures that could deter such illegal activities.

In an interview with Citi FM, GAWU National Chairman Michael Amoo-Gyasi emphasized the need to stabilize the Ghanaian Cedi and improve cocoa prices as key strategies to combat smuggling.

He highlighted that a higher farmgate price would not only benefit farmers but also discourage them from engaging in illicit activities due to more attractive local market conditions.

“This smuggling, because of price variation across the border, I mean the price offered in the neighbouring countries, such as Togo and La Côte d’Ivoire, is far above us. A 50kg bag of cocoa beans costs about GH¢8,000, whilst here in Ghana it is about GH¢3,000."

“So that price variation of about GH¢5,000 incentivises the smugglers to do so because they will reap a lot of differences in the price variation."

“So if the government can do that, unless it increases the prices, at least at the farmgate level, to a bit closer to the prices being offered by our neighbouring countries, which will disincentivise the smugglers from sending it there because if they will not gain much from the smuggling if they take out their transport and logistical charges.”