The move targets fairer income for producers, a Ghanaian official has said

Ghana is raising the official price paid to cocoa farmers by 62.6%, effective immediately, Finance Minister Cassiel Ato Forson announced on Monday on X.

Forson said the decision delivers on a key campaign pledge made by President John Dramani Mahama and is intended to improve the livelihoods of cocoa farmers across the country.

"The government is pleased to announce an increase in the producer price of cocoa from US$3,100 per ton to US$5,040 per ton," Forson stated.

The new pricing framework also aims to ensure that growers receive 70% of the Free-On-Board (FOB) price - the benchmark value of cocoa at the point of export. The Ghanaian government has framed the change as part of a broader effort to guarantee that cocoa producers benefit more directly from international market conditions.

Ghana is the world's second-largest cocoa producer after neighboring Cote d'Ivoire. Together, the two West African countries are responsible for around 60% of global cocoa output, making them central to the multi-billion-dollar chocolate industry. In Cote d'Ivoire, farmers receive $2,073 to $3,900 per ton of cocoa beans, according to various estimates.

Speaking in July, Mahama reaffirmed his administration's commitment to ensuring that cocoa farmers receive a fair share of the world market price. He stated that the government would stand by its pledge to allocate 70% of export value to producers. "The sweat of our cocoa farmers deserves dignity and a fair reward," Mahama said.

In May, the Finance Ministry announced that the government intends to secure 200,000 hectares of land for cocoa cultivation as part of its strategy to enhance production.

"Cocoa has always been the mainstay of our economy, and that must not change," Forson said.

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According to the latest Auditor General's report on the Bank of Ghana's foreign exchange receipts and payments in 2024, Ghana exported 261,248 metric tons of cocoa beans, representing a nearly 50% drop compared to 2023 export volumes. Despite the decline in quantity, earnings from cocoa exports increased significantly due to a global price surge.

(RT.com)