The Institute for Liberty and Economic Education has welcomed the decision by the Ministry of Finance and the Ghana Cocoa Board to adjust the cocoa producer price to GH₵2,587 per bag, describing it as a difficult but necessary step to protect the financial stability of the cocoa sector.
The adjustment, announced on February 12, comes at a time of rising global market pressures and domestic liquidity challenges.
According to ILEE, the price review highlights broader difficulties in managing cocoa prices under a highly centralized system.
The institute views the development as a signal for reforms that will better link world market prices to what farmers receive locally.
The Director of Policy at ILEE, Dr. Stephen Morgan noted that while government efforts to openly address the current challenges are encouraging, more frequent and market linked price reviews would help avoid sudden and disruptive changes in the future.
ILEE therefore proposed a set of reforms it describes as a partnership for prosperity to support government efforts and protect farmers.
These include adopting a price setting formula that adjusts more regularly in line with global trends, expanding the role of Licensed Buying Companies to reduce the financial burden on the state, and giving farmers greater flexibility in how and where they sell their cocoa.
The institute believes these steps will help curb problems such as smuggling and the shift of farmlands to illegal mining.
The think tank called for stronger incentives for local cocoa processing.
It praised government efforts to promote value addition and encouraged further easing of restrictions to allow small scale Ghanaian businesses to process more cocoa locally, which could reduce pressure on exports and create additional jobs.
ILEE indicated its readiness to work with COCOBOD and the Ministry of Finance to develop a balanced framework that combines state oversight with market efficiency.
It maintains that closer alignment between local cocoa prices and global market realities will help ensure that Ghana remains a leading producer known for quality cocoa and improved farmer welfare.
By: Jacob Aggrey
