Addressing Parliament on Tuesday, the Effutu Member of Parliament argued that the GH¢3,625 rate constituted a minimum guaranteed price for the entire 2025/2026 crop season and could not be altered to the disadvantage of farmers.
“Mr Speaker, the producer price of GH¢3,625 is a minimum guaranteed price and legally destined to run the full course of the 2025/2026 crop season,” he stated. “The government cannot vary the minimum guaranteed price to the disadvantage of cocoa farmers or any of the parties with a share in the achieved FOB price.”
Mr Afenyo-Markin maintained that the reduction breached contractual obligations and compounded the hardships of farmers, particularly in the wake of delayed payments. He called for the immediate reinstatement of the GH¢3,625 price and compensation for affected farmers.
However, the Majority Leader, Mahama Ayariga, rejected the Minority Leader’s claims, describing them as misleading. He said price reviews, whether upward or downward, did not violate any law or established industry practice.
“Mr Speaker, there is no illegality in reviewing the price downwards, just as there is no illegality when the price is reviewed upwards. To suggest that the review itself is illegal has no basis in law or in established practice,” he said.
Mr Ayariga, who represents Bawku Central, also dismissed arguments that forward sales arrangements restricted government’s ability to adjust payments to farmers. He explained that forward sales typically account for about 70 per cent of annual output, meaning a substantial portion of cocoa remains unsold in advance.
“Mr Speaker, a significant portion of cocoa is sold forward every year, but it is never the entire output. So the claim that farmers could not be paid because cocoa had already been sold forward is simply inaccurate,” he added.
Adding his voice to the debate, Dr Godfred Seidu Jasaw, Chairman of the Parliamentary Committee on Food, Agriculture and Cocoa Affairs, raised concerns over the financial health of the Ghana Cocoa Board (COCOBOD).
He noted that COCOBOD’s default during the 2023–2024 season, after more than three decades of relying on syndicated loans, had weakened investor confidence and complicated efforts to secure financing.
According to Dr Jasaw, the government’s ongoing reforms, including the introduction of domestic cocoa bonds, are aimed at creating a more sustainable financing framework and reducing dependence on external borrowing. He further disclosed that approximately 530,000 tonnes of cocoa had already been purchased, leaving about 70,000 tonnes available, and that steps were being taken to convert GH¢5.8 billion in legacy debt to improve the Board’s balance sheet.
The government recently announced the reduction in the farm-gate price as part of broader reforms within the cocoa sector.
GHBUSS
Feb. 17, 2026
No comments:
Post a Comment