We can not reduce the price of cocoa production – COCOBOD at the IMF

Company News of Friday, April 26, 2019

Source: kasapafmonline.com

2019-04-26

The Ghana Cocoa Board (COCOBOD) has announced that it will keep the current price of cocoa in production despite the International Monetary Fund's (IMF) call for adjustment by the government.

The International Monetary Fund (IMF) has advised the government to adjust the price to cocoa production to account for the evolution of international cocoa prices.

According to the IMF, the downward adjustment had become necessary as the Ghana Cocoa Board (COCOBOD) was facing a funding deficit of 1 billion GH ¢ due to the inability of the government to reduce producer prices paid to cocoa producers at some point. had been falling.

In its seventh and eighth reviews, the IMF explained that this adjustment was necessary to prevent COCOBOD from closing the growing financing gap under the recently concluded External Credit Facility (ECF) program.
The fund said that although the government and COCOBOD have taken appropriate measures to provide temporary relief, "more is needed to strengthen COCOBOD's financial situation".

But in an interview with host Akwasi Nsiah on Anopa Kasapa on Kasapa 102.5 FM, the head of the office of Ghana's chief executive Cocoa Board, Fiifi Boafo said that the current threshold could not be revised downward. detriment of poor farmers. already complain about the price.

"It will not be in our interest to reduce the price to impoverish farmers. They have contributed to the development of the nation through their quota and we must support them to keep them afloat. Secondly, we are losing our cocoa land to illegal artisbad miners (galamsey). You will realize that most of the cocoa producing areas are enclaves where illegal mining activities are multiplying. Illegal miners put pressure on poor farmers to take back their cocoa farms. If local farmers lose money in growing cocoa, they have every interest in giving away their land to galamseyers and making a lot of money instead of peanuts that they pull from the crop to because of low prices. This poses a threat to the sustainability of cocoa production in the country.

He added, "Although we are struggling to support farmers, the government and COCOBOD are ready to relieve them and find other ways to fill the funding gap."