A member of the Upper East Regional Communications Team of the National Democratic Congress (NDC), Isaac Ayemvoa, has defended the government’s newly announced cocoa price, stressing that it reflects global market realities and the current exchange rate situation.
His remarks came after the Minister of Finance, Dr. Cassiel Ato Forson, announced that the price per 64-kilogramme bag of cocoa beans has been increased from last year’s GH¢3,100 to GH¢3,228.75.
Speaking on A1 Radio, Mr. Ayemvoa explained that cocoa remains a crucial commodity for Ghana’s economy and plays a significant role in maintaining the strength of the cedi. He argued that no government should treat the cocoa sector lightly, as doing so would be a great disservice to both farmers and the nation. “When you are looking at it, cocoa is one of the most important products in this country that you cannot joke with. So, any government that plays around with cocoa in a manner that does not promote its production is doing a great disservice to the cocoa farmers and the country as well.”
He emphasised that the government’s pricing decision is tied to international market dynamics and the strength of the dollar against the cedi, which has shifted significantly from about GH¢16 to around GH¢10.25. “It is not just about the price. If you say you are paying GH¢6,000, it’s essentially about the dollar value. If I give you $2 at the time the exchange rate was GH¢16, and now the dollar is at GH¢10.25, the value has changed. So, you have to consider the exchange rate at both points in time. That’s the basis of the pricing.”
According to him, while many would compare current prices to previous years in nominal cedi terms, it is important to consider the real value in dollar terms, which reflects Ghana’s position on the global cocoa market. He pointed out that although cocoa prices are often quoted in cedis, they are directly influenced by fluctuations in the dollar, making such comparisons complex if the exchange rate is not factored in.
Mr. Ayemvoa also noted that Ghana still exports most of its cocoa in raw form, which limits the economic benefits the country could derive if more value were added locally through processing and manufacturing. Despite this challenge, he argued that the current pricing arrangement seeks to maintain the stability of the cocoa sector while ensuring farmers are fairly compensated.
He concluded that the government’s policy is focused on protecting cocoa production and securing long-term benefits for both the farmers and the economy, adding that the NDC supports any effort that prioritises sustainability and economic resilience in the sector.
Source: A1Radioonline.com|101.1Mhz|Gifty Eyram Kudiabor|Bolgatanga
