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A shot in the arm, farmers gain cocoa price increase
Accra, Feb. 26, GNA - Government on Tuesday
increased the producer of price of cocoa for the
2007/08-Crop Year from 950 GH cedis to 1,200 GH cedis per
metric ton representing 26.4 percent rise.
In addition, it would pay bonuses for the 2007/2008 main
crop season, Professor George Gyan-Baffour, Deputy Minister
of Finance and Economic Planning told journalists in Accra.
The new adjustment meant therefore that, a bag of 64
kilogrammes of cocoa is now 75 GH cedis from the current
59.375 GH cedis. This is the second time in seven years the
producer price has been adjusted upward.
Prof. Gyan-Baffour said; “The last time such a revision was
made was during 2001/2002 main crop season in February 2002
when government had to review upwards the producer of cocoa
to reflect the prevailing development in the global cocoa
market.”
He noted that with the projected tonnage of
111,050 yet to be purchased, government would now incur an
extra cost of 27.76 million GH cedis for the rest of the
main season.
He said in spite of the impressive performance seen so far
in this season, the upsurge of smuggling activities across
the Western and Eastern borders sent worrying signals.
Prof. Gyan-Baffour said the producer price offered by buyers
in Cote d'Ivoire between the second week of this February
this year, showed an average equivalent of 1,190.26 GH cedis
against the Ghana current producer price of 950 GH cedis.
The relative price differential led to the upsurge of the
smuggling.
On the payment of bonuses, Prof. Gyan-Baffour said:
"...farmers who sell their cocoa to registered LBCs in Ghana
will be paid additional monies at the end of the 2007/08
season as bonuses for their sales."
He said the second tranche of bonuses for the 2006/07
seasons would be paid in June/July this year as promised by
government.
The first tranche of 16 million GH cedis has been paid
already by COCOBOD.
Prof. Gyan-Baffour said Government would continue to ensure
that stakeholders in the industry were paid economic rates
and fees so that their businesses remained profitable.
"To this end, increases in buyer's margin for LBCs, hauliers
rates for evacuation, among other rates and other charges
would be reviewed upwards in due course," he said.
Mr Isaac Osei, Chief Executive of the Ghana Cocoa Board said
with the new price, purchases declared by LBCs as at week
number 18 ending February 21, 2008 would attract the old
producer price of 950 GH cedis per ton whilst those made
after February 21, attracted the new producer price.
He described the new price very competitive when compared to
prices being floated in the neighbouring countries of Ghana
and would therefore serve to stem the tide of cross border
trade in cocoa from Ghana.
"It will also put more money into the pockets of farmers and
therefore enhance their welfare," Mr Osei said.
GNA
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