The policy aims to enhance the welfare of cocoa farmers as the new season commences, stated Agriculture Minister Bryan Acheampong. Effective Wednesday, the price for a 64-kilogramme bag of cocoa beans has been elevated to 192from192from132, marking a significant increase.

This adjustment sets the farm gate price at 3,063 pertonne,asubstantial129−percent surge from the initial price of 3,063 pertonne, as ubstantial 129−percent surge from the initial price of 1,335 per tonne for the 2023/2024 season. "This 129.36 percent increase is unprecedented," Acheampong remarked during the announcement on Wednesday. "This substantial rise in the producer price of cocoa underscores the government's dedication to bolstering the sector and enhancing the livelihoods of Ghanaian cocoa farmers."

The price hike comes after a mid-season adjustment last year, where the government increased prices from 1,335pertonneto1,335pertonneto2,113 per tonne in reaction to the escalating international cocoa prices. Recently, New York cocoa futures have skyrocketed beyond $7,000 per tonne, attributed to poor harvests in Ghana and Ivory Coast, the leading global producers.

Despite this, farmers in these nations often receive significantly lower prices, as dictated by their governments. Experts believe that augmenting the farm gate price could diminish the allure of illegal cross-border sales, encouraging farmers to reinvest in their cocoa farms, which may alleviate the global supply deficit.

Ghana's cocoa yield has diminished in recent years due to adverse weather conditions, disease, insufficient inputs, and smuggling. The cocoa sector, contributing approximately 10 percent to the nation's GDP, is predominantly supported by smallholder farmers.

However, the depreciation of the cedi, which has lost over 20 percent of its value against the dollar this year, has further compressed farmers' profit margins—despite international prices peaking at $10,000 per tonne in March before declining. Production costs have also escalated, with fertilizers and other essential materials becoming increasingly costly, and poor road infrastructure driving up transportation expenses.

Additionally, the sector faces challenges from the Cocoa Swollen Shoot Virus Disease, which has ravaged nearly 500,000 hectares of cocoa farms in recent years, accounting for about 29 percent of Ghana's total cocoa production area.