Cocoa price goes up by 37%

Government on Friday announced a new producer price of 8.5 million cedis per tonne of cocoa for the main crop season beginning October 11.

The new price for a bag of 64 kilograms is 531,250.00 cedis, representing 37 per cent increase over the previous price of 6.2 million cedis per tonne and 387,500 cedis per bag of 64 kilograms approved for the last season.

This is the third increase since the government assumed power about 22 months ago. The first was in May 2001. Finance Minister, Mr Yaw Osafo-Maafo told a press conference to announce the new price that the competitive price offered by government for the crop should discourage smuggling of cocoa out of the country.

"It was also government's reward to cocoa farmers for their dedication and hard work in sustaining the economy," he said. He said the government would continue to improve on prices paid to farmers on an annual basis until a 70 per cent share of the net Free on Board Price of cocoa was attained by the 2004/2005 Cocoa Season.

The new producer price puts farmers' share of the FOB price at 68 per cent, a one per cent rise from the previous mark of 67 per cent.

The Minister said government was also putting in place anti-smuggling measures at the country's borders to reduce the rate of smuggling.

It is estimated that 60,000 tonnes of cocoa was smuggled out of the country last year. The country produced 340,000 tonnes last year. Mr Osafo-Maafo announced that a 82-billion-cedi grant had been secured to improve the road networks in cocoa growing areas to boost production. Over 242 billion cedis would also be used on diseases and pest control programmes to support farmers to improve their husbandry and increase productivity to enable the county to capture the second spot it lost to Indonesia