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The Majority in Parliament has endorsed the government’s recent reforms in the cocoa sector, calling them the most reasonable and strategic actions required to revitalize and improve the industry.
The caucus states that the policy decisions reflecting a 28 percent decrease in the farmgate price of cocoa are based on data, market realities, and regional dynamics, rather than being arbitrary.
Speaking to journalists, Chairman of the Food, Agriculture and Cocoa Affairs Committee, Godfred Seidu Jasaw, stated that the price change was partially influenced by current rates in neighboring cocoa-producing nations to avert reverse smuggling into Ghana.
He clarified that keeping a price above that of neighboring countries might encourage traders to illegally bring cocoa into Ghana to benefit from the higher price.
“We also thought that because surrounding countries were selling at lower prices, there could be reverse smuggling,” he said.
“If you maintain or even increase prices here, then there is the possibility of a scheme to bring in more cocoa from neighbouring countries to sell in Ghana at higher prices. All these factors exist.”
According to Dr. Jasaw, the government’s planned reform package is the result of an extensive review of current season purchasing patterns and production data.
He revealed that around 530,000 metric tons of cocoa beans had already been purchased, out of the 600,000 metric tonnes the government had planned to buy this year.
“If you are dealing with data, per the projections and recent trends, it means the cocoa beans left in the field are not more than 70,000 metric tonnes,” he clarified.
“So it is actually wise that you reduce the producer price for the rest of the 70,000 yet to be mopped up.”
“When my colleagues create the impression that all cocoa beans produced this year are going to be shortchanged and that every bag will sell at 2,570, that is inaccurate,” he said.
Dr. Jasaw went on to say that, considering the international renown of Ghanaian cocoa, the new pricing structure would potentially draw more buyers back to Ghana.
“The buyers who didn’t find Ghana’s price attractive and had to go to neighbouring countries will now relocate to Ghana in response to this new price because they already know that Ghana cocoa is premium. They actually prefer Ghana cocoa,” he added.
The Majority also assured cocoa farmers of continued government support aimed at boosting productivity and stabilising the sector.
Source: Ghanatodayonline.com
