Ghana Hikes Cocoa Price

ACCRA, Ghana (PANA) - Ghana has announced a 7.9 percent hike in the producer price of cocoa and said it was introducing a two-tier payment system that will reflect new prices for the minor and major seasons.

This is because the minor season does not fetch enough money for farmers on the international market, Finance Minister, Kwame Peprah, said Thursday in Accra.

He said the producer price of cocoa would rise from 2.250 million cedis per tonne (140,625 cedis per bag of 62.5 kg) to 2.428 million cedis per tonne (151,755 cedis per bag of 62.5 kg) with effect from Friday when the 2000 light crop season opens (1US = 4,900 cedis).

Ghana purchases about 10 percent of the total crop during the minor season.

Peprah said the government intended to have a proper view of the unfolding world market situation and then review the producer price for farmers and other stakeholders in the industry at the beginning of the new season.

He said that the government recognised the grave situation facing cocoa farmers and believed that it must continue to support them by ensuring that reasonable prices were paid them to continue producing the commodity, which has sustained the country over the years as Ghana's main foreign exchange earner.

"Government is not oblivious to the steep decline in world cocoa prices," Peprah said, adding that cocoa prices are at a 27- year low.

He said the new producer price represented 67 percent of the projected FOB price.

Peprah said government was committed to the external marketing of cocoa for the private sector that is expected to take off in October this year.

Regulations and guidelines for participation by qualified companies would be published soon.