COCOBOD incurred GHC2 billion debt in 2017 for cocoa price subsidy

The Public Relations Officer (PRO), for Ghana Cocoa Board (COCOBOD), Mr Kwesi Amenya, has disclosed on Rainbow Radio 87.5Fm that, COCOBOD incurred GHc2 billion debt for subsidising the price of cocoa in 2017.

COCOBOD he decried has not been able to break even and any attempt to increase the price of cocoa could have financial implications on COCOBOD. He told morning show host of Frontline on Rainbow Radio 87.5Fm that, COCOBOD explained to the farmers it could not adjust the price but maintain it. The farmers accepted the explanation, he said.

The PRO argued that the decision was the only laudable alternative since Ghana is the only country, out of the 22 cocoa producing countries, to have maintained its producer price despite the decline in the FOB price.

''We incurred a debt of GHc2 billion in 2017 for subsidising the prices. We have not been able to break even and any attempt to increase the price will further increase the debt,'' he added. COCOBOD has maintained the price of cocoa due to the drop of world market prices.

Chief Executive Officer (CEO), Joseph Boahen Aidoo disclosed this at the 2018 Cocoa Day grand durbar on Monday, October 1, 2018. He indicated “the fall in cocoa price at the world market by 40% is now a public threat and must be of concern to every well-meaning Ghanaian.

The FOB price of cocoa was GHC 728.38 per bag in 2016/2017 whiles the producer price at that time was GHC 475 per bag. Even though the FOB (World Market) price dropped GHC 527 per bag in 2017/2018, the Akufo-Addo government decided to maintain the same producer price of GHC 475 per bag,”