The Republic Editorial: Increment in Cocoa Producer Price
It goes without saying that cocoa is an important contributor to the growth of Ghana. Thousands of rural households depend on the cash crop to make a living. The crop contributes some 25% of the total GDP of the country.
In this respect, The Republic would like to commend the government of H.E. John Mahama for increasing the producer price of cocoa for the new crop season.
In a strong demonstration of its commitment to improving the general welfare of cocoa farmers in the country, the government has increased the producer price of cocoa by a worthy 11.76% for the 2016/2017 season.
This means that with effect from October 1, cocoa farmers would receive Gh¢7,600 per tonne of cocoa, up from the previous Gh¢6,800 per tonne.
Even though some farmers wished the increment is bigger than the one announced, this paper believes that the new price, coupled with the Stabilization Fund which was instituted by the government to cushion farmers against declines in the world market price of cocoa in the future, will secure a better life for the hardworking cocoa farmers in Ghana.
The Republic also believes that these measures would be able to stop the persistent smuggling of cocoa to Ivory Coast and Togo, as the domestic price of the crop is now very competitive in the sub-region.