Government has raised the producer price of cocoa by GH¢400 per bag, representing a 12.27 percent increase in a move aimed at shoring-up farmer incomes and easing mounting pressure within the cocoa sector.
The revision, announced in Accra on Thursday following deliberations by the Producer Price Review Committee (PPRC), pushes the farmgate price for the 2025/26 season from GH¢3,228.75 per bag to GH¢3,625 per bag – equivalent to GH¢58,000 per tonne.
Dr. Cassiel Ato Forson, Minister of Finance and Chair-PPRC, said the new price will take effect from Friday, October 3, 2025. He stressed that this adjustment is the product of broad stakeholder engagement.
“Following extensive consultations with stakeholders, government has decided to increase the producer price of cocoa to GH¢3,625 per bag – or GH¢58,000 per tonne,” he stated in the communique.
The revision marks a second adjustment in two months. In August, government had pegged the producer price at GH¢3,228.75 per bag (GH¢51,660 per tonne/US$5,040 per tonne), 70 percent of the average gross Free-on-Board (FoB) price of cocoa at US$7,200 per tonne. But pressure from farmer groups, coupled with competitiveness concerns vis-à-vis Côte d’Ivoire, prompted the latest review.
“This represents an increase of about GH¢400 per bag, equivalent to a 12.27 percent rise over the price announced in August,” the finance minister noted.
“Margins, fees and rates to all other stakeholders, including COCOBOD, remain unchanged,” he added.
Cocoa is the export economy’s backbone and supports more than 800,000 smallholder farmers. While the new price promises a significant boost to rural incomes, it also places additional fiscal strain on the Ghana Cocoa Board (COCOBOD) which has long struggled with mounting debts and heavy subsidy obligations.
To mitigate risks and improve productivity, government pledged to sustain input support programmes.
“COCOBOD will continue to implement interventions that support cocoa production and improve the welfare of cocoa farmers. In particular, COCOBOD will intensify the supply of free cocoa fertilisers (liquid and granular), free insecticides, free spraying machines, free fungicides and free flower inducers,” Dr. Forson said.
Beyond immediate price relief, government reaffirmed its commitment to expanding social benefits within the sector. A long-promised Tertiary Education Scholarship Scheme for children of cocoa farmers is expected to be rolled out in the 2026/27 academic year.
The move is expected to temper growing discontent among farmer unions, many of whom had threatened protests or warned of diverting beans to neighbouring countries if domestic prices lagged behind those in Côte d’Ivoire. With Ghana and Côte d’Ivoire jointly accounting for more than 60 percent of global cocoa supply, policy alignment between the two remains essential to curbing smuggling and ensuring stability in the market.
“Government remains committed to supporting the Ghana Cocoa Board to build a robust and resilient cocoa industry that provides sustainable and optimal benefits to all stakeholders,” Dr. Forson added.
Source : bftonline
