?82bn for Roads in Cocoa Growing Areas -Osafo Maafo

Finance Minister Yaw Osafo Maafo has announced that an amount of?82.0 billion has been secured by the government to rehabilitate the existing roads and construct new ones in the cocoa growing areas to help in the evacuation of cocoa and other produce with top priority given to the development of the western corridor roads.

He made this announcement at a news conference on the opening of the 2002\2003 cocoa season in Accra last week.

He disclosed that government has given the approval for the producer price of cocoa to be increased from ?6.2million per tonne to ?8.5million per tonne with effect from the 2002\2003 main crop season which began on October 11, this year with increase in producer price over the last one being 37 per cent.

He added that the rates and fees for other operators engaged in the internal market of cocoa have been reviewed upwards with the new competitive price discouraging smuggling of cocoa out of the country.

Mr. Osafo Maafo noted that an amount of ?242 billion has been set aside for the disease and pest control programme which would continue this year in all the six cocoa growing regions to provide support to cocoa farmers to improve farm husbandry and increase productivity.

The finance minister said government has also authorised the immediate payment of a pre-season bonus of ?50 billion to dedicated farmers in appreciation of their work in the past season.

On the sustainability of producer prices of cocoa, the finance minister again said the current high levels of prices on the world cocoa market have been influenced by developments in the sub region and, therefore, the market is reflecting uncertainty and anxiety, but government intends to pursue a pricing policy which would guarantee and protect farmers income through sustainable prices.

The NPP government in its 2000 manifesto committed itself to improving and sustaining the cocoa industry through increased farmer incomes and farm maintenance among others.

He appealed to smugglers to desist from smuggling since it undermines the economy.

Since assuming office about 21 months ago, the NPP government has increased cocoa prices three times.

The first increase in may 2001 was from ?3,475,000 to 3,872,000 per metric tonne with further increases in October, 2001 and February, 2002 culminating in a price of ?6,200,00 per metric tonne. This represents an increase of 78.4 per cent.