Accra: The Government has mandated the swift settlement of all outstanding payments owed to cocoa farmers, aiming to alleviate the financial strains they are currently facing. Dr Cassiel Ato Baah Forson, the Minister of Finance, announced this directive during a press briefing, following an urgent Cabinet meeting intended to tackle the pressing issues within the cocoa sector.
According to Ghana News Agency, the Ghana National Cocoa Farmers Association has been vocally demanding that the Ghana Cocoa Board (COCOBOD) fulfill its financial commitments, as some farmers have not been compensated since November 2025. This situation has heightened tensions, prompting the government to instruct COCOBOD to commence immediate payments.
Addressing concerns about COCOBOD's financial capacity to make these payments, Dr. Forson reassured that the organization is well-positioned to settle the arrears. He clarified that the Bank of Ghana would not be involved in the payments, as it does not purchase cocoa-COCOBOD does.
Dr. Forson also highlighted Cabinet's decision to implement reforms that ensure fair pricing for farmers, maintain the financial health of the sector, and promote its long-term sustainability. These reforms include seeking parliamentary approval to address inherited debts and protect the interests of farmers and the broader cocoa industry.
Key changes proposed by the Producer Price Review Committee (PPRC) include ensuring that farmers receive 90% of the Free-on-Board price, which is set at US$4,200 per tonne. A new cocoa board bill will propose an automatic price adjustment mechanism to align with global market trends, ensuring a minimum of 70% of the gross price is paid to farmers.
Additionally, the Finance Minister announced plans to revitalize the State-owned Produce Buying Company (PBC) to restore its role as a leading licensed buyer in the cocoa sector. The new financing model will enable COCOBOD to sell cocoa beans to local processors, encouraging value addition and job creation. There is a directive for the remaining cocoa crop of 2025-2026 to be processed domestically to support this initiative.
Reacting to the government's announcement, Nana Osei Adusa, the Ahafo Regional Chief farmer, expressed relief and optimism. He emphasized the positive impact of timely payments on farmers' lives and urged the government to maintain its payment obligations to avoid future hardships for cocoa farmers.