Here’s detailed explanation why Ghana will not reduce the prices of cocoa as directed by the IMF

The Ghana Cocoa Board (COCOBOD) says it will not yield to the directives of the International Monetary Fund (IMF) to reduce the current prices of cocoa because it will push farmers into selling their cocoa farms to illegal miners despite government’s efforts to deal with the menace.

Here’s detailed explanation why Ghana will not reduce the prices of cocoa as directed by the IMF

The government-controlled institution further indicated that the decision will force farmers to easily give out farmlands to illegal miners compared with the prices of their products.

Manager at the office of Chief Executive Officer for COCOBOD, Fiifi Boafo made the revelation while speaking on the reason while the institution is not conforming to the direction from the IMF.

He said, “Reducing price of cocoa will become an incentive for farmers to sell farmlands to illegal miners.”

Recently, the International Monetary Fund (IMF) advised the government of Ghana to adjust the producer price of cocoa to reflect changes in international cocoa prices.


According to the IMF, the downward adjustment has become necessary because the Ghana Cocoa Board (COCOBOD) was grappling with a funding gap of $195 million (GH¢1billion) due to the government's inability to reduce producer prices paid to cocoa farmers at a time global prices of the crop had been falling.

Since Ghana’s Extended Credit Facility programme with the IMF expired at the beginning of April, the government is not under any obligation to implement the organisation’s recommendations, but it is instructive that the government considers them, at least where they do not overly emphasise demand management over the supply side expansionary economic policies.

Mr Boafo however, noted that there are a number of illegal mining operators who are already knocking on the doors of cocoa farmers urging them to release their cocoa farms for them to use for their operations.

He further added that in situations where farmers are getting low income for their products, they will have an intensive itch to accept a deal from someone who is willing to pay more money for a small piece of land.

“With a large sum, the farmers may release their lands to the illegal miners (galamseyers) to operate. For us as a country, I don’t think it’s in our interest to lets farmers lease their land to these operators,” he said.


Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or: