The Minority Leader, Alexander Afenyo-Markin, has called on government to immediately reverse its decision to reduce the cocoa producer price, describing the move as illegal and an attempt to shortchange Ghanaian farmers.
In a statement on the floor of Parliament, the Effutu MP criticised the government’s decision to slash the prevailing producer price from GH¢3,625 per 64kg bag (GH¢58,000 per tonne) to GH¢2,587 per bag (GH¢41,392 per tonne), arguing that the reduction violates established pricing principles within the cocoa sector.
“Decision is Illegal and Contractually Binding”
According to the Minority Leader, once a producer price is announced for a crop year, it becomes legally and contractually binding and cannot be varied to the disadvantage of farmers within the same season.
He recalled that in October 2025, the Finance Minister, Cassiel Ato Forson, announced that COCOBOD had secured a Free-On-Board (FOB) price of US$7,200 per tonne. Based on that, farmers were to receive US$5,040 per tonne — equivalent to GH¢58,000 per tonne or GH¢3,625 per bag.
Mr. Afenyo-Markin argued that if the US$7,200 FOB price was based on actual weighted average prices from already traded cocoa, then government must honour the originally announced producer price for the entire 2025/26 crop season.
He further demanded that COCOBOD compensate farmers and Licensed Buying Companies (LBCs) for any financial losses already incurred following the revised price announcement.
Majority and Minority Trade Blame
The statement triggered heated exchanges between Majority and Minority Members of Parliament, with both sides blaming each other’s administrations for challenges in the cocoa sector.
Minority: “Gross Mismanagement”
Former Energy Minister, Hon. Abdulai Jinapor, described the reduction as a direct result of what he termed gross mismanagement and lack of understanding of the cocoa sector under the John Dramani Mahama administration.
He noted that the cocoa sector supports over four million Ghanaians and argued that government failed to take advantage of higher global prices when cocoa traded at around US$11,000 per tonne.
Hon. Kojo Oppong Nkrumah also criticised the decision, stating that COCOBOD is reportedly losing about GH¢200 million and warning that the price cut could push many cocoa farmers into poverty. He described the reduction of over GH¢1,000 per bag as shocking and inconsistent with earlier promises.
Hon. Isaac Opoku and Awua Acheampong similarly attributed the development to incompetence and poor judgment, arguing that past economic shocks had not led to mid-season price reductions.
Majority: “Inherited Challenges and Reform Agenda”
On the other hand, Majority MPs defended the decision, blaming structural weaknesses inherited from the previous New Patriotic Party administration under former President Nana Akufo-Addo.
Hon. Sampson Ahi rejected claims that Côte d’Ivoire had increased producer prices, insisting that Ghana’s current producer price remains comparatively higher.
Hon. Fred Agbenyo argued that the current government has demonstrated care for cocoa farmers through free fertilizer distribution and reforms aimed at strengthening the sector. He also noted that the stronger cedi has improved farmers’ purchasing power.
Energy Minister Hon. John Jinapor maintained that borrowing to sustain artificially high producer prices would be unsustainable. He revealed that government is currently paying close to 90 percent of the FOB price to farmers, insisting that fiscal prudence must guide policy decisions.
Hon. Seidu Jasaw explained that government’s inability to undertake forward sales was linked to previous syndicated loan defaults, adding that reforms underway would address structural challenges. He disclosed that 530,000 metric tonnes of cocoa have already been purchased, with about 30,000 metric tonnes remaining.
Call for Non-Partisan Approach
Dr. Kabiru Tia Mahama expressed disappointment that the debate had become overly politicised, stressing that over one million cocoa farmers are directly affected by the decision. He urged Parliament to approach the matter with urgency and seriousness rather than partisan positioning.
The debate underscores growing tensions over the management of Ghana’s cocoa sector, a key pillar of the national economy and a major source of livelihood for millions of citizens.
As pressure mounts from the Minority for an immediate reversal, government is yet to indicate whether it will reconsider the revised producer price.
Source: Clement Akoloh||parliamentnews360.com
