The Minority Caucus in Ghana’s Parliament has launched a scathing attack on the ruling National Democratic Congress (NDC) government for its perceived inaction on adjusting cocoa producer prices, despite favorable international market conditions. Accusing the government of betraying cocoa farmers and reneging on its manifesto promises, the Minority has demanded immediate action to rectify what they see as a gross injustice. This demand comes amidst rising global cocoa prices and a significant price hike by neighboring Côte d’Ivoire, creating a stark disparity that threatens to fuel cocoa smuggling and jeopardize Ghana’s cocoa sector.
Central to the Minority’s argument is the NDC’s pre-election pledge to ensure regular price increments in line with global market trends and to pay farmers 70% of the Free-on-Board (FOB) price. The Minority highlights the stark contrast between these promises and the government’s current stance, questioning whether the commitments were mere political rhetoric designed to secure votes. They specifically reference statements made by leading NDC figures, including the current Minister for Food and Agriculture and the Minister for Finance, who allegedly promised a price of GH₵6,000 per bag of cocoa. The Minority now demands that the government honor these promises and provide cocoa farmers with the fair compensation they deserve.
The Minority’s criticism stems from two recent public statements issued by COCOBOD, Ghana’s cocoa regulatory body, which outlined reasons for maintaining the current producer price. The Minority has dismissed these justifications as “untenable” and insufficient, particularly given the rising global cocoa prices. They challenge COCOBOD’s cited reasons, which include operational challenges, the absence of a producer price review committee, and financial implications, arguing that these are mere excuses to avoid fulfilling their obligations to the farmers. The Minority contends that COCOBOD has the financial capacity to absorb any debt and increase producer prices, citing the significant revenue generated from cocoa sales and the introduction of a new financing model that eliminated the need for annual syndication loans.
Furthermore, the Minority has expressed grave concerns about the widening price gap between Ghana and Côte d’Ivoire, where the government has recently increased cocoa prices by 22.24%. This disparity, they argue, presents a lucrative opportunity for smugglers to divert Ghanaian cocoa across the border, potentially leading to a significant loss of revenue and undermining the country’s cocoa industry. They warn that the situation could also incentivize farmers to abandon cocoa farming for illegal mining activities, especially with the current surge in gold prices. The Minority insists that the government must act swiftly to address this crisis by raising cocoa prices to match or exceed those offered in Côte d’Ivoire, emphasizing that this is not just an economic issue but a matter of national security and the preservation of Ghana’s agricultural heritage.
The Minority has also challenged COCOBOD’s explanations for maintaining the current price, particularly the claim of operational challenges. They question the nature of these challenges and demand transparency from the government. Regarding COCOBOD’s assertion about the absence of a producer price review committee, the Minority counters that this is a standing committee and its absence cannot be a valid excuse. They also dismiss the financial implication argument, highlighting COCOBOD’s substantial revenue streams and its ability to manage its debt. The Minority points to the success of the previous administration’s financing model, which eliminated the need for annual syndication loans, as evidence of COCOBOD’s financial strength.
In their press statement, the Minority underscores their commitment to championing the welfare of cocoa farmers and holding the government accountable for its promises. They express deep disappointment with COCOBOD’s stance and accuse the NDC of betraying the trust of cocoa farmers. The Minority has vowed to continue pressing for clarity and action, emphasizing that the livelihood of Ghana’s cocoa farmers cannot be sacrificed for political expediency. They call for immediate action to increase the producer price of cocoa, urging the government to fulfill its campaign promises and safeguard the future of Ghana’s cocoa industry. The Minority’s strong stance reflects their determination to protect the interests of cocoa farmers and ensure the sustainability of a sector vital to Ghana’s economy.
