Former Finance Minister Dr. Mohammed Amin Adam has slammed the government’s decision to reduce the producer price of cocoa, calling it a “haircut” for farmers. Dr. Amin Adam stated that a bailout would have been a more appropriate response to the sector’s crisis.
Speaking at a press briefing, Dr. Amin Adam accused the government of recklessly mismanaging the cocoa sector and failing to implement a comprehensive turnaround strategy developed by the previous administration in consultation with the International Monetary Fund (IMF). “We warned this government about the reckless overvaluation of our currency, which will affect our economy,” he said, adding that the stronger cedi has made Ghana’s cocoa more expensive on the global market, leading to reduced demand.
Dr. Amin Adam expressed shock that the IMF has not commented on the government’s inaction, despite the strategy being a requirement under Ghana’s IMF programme. He noted that the previous administration’s blueprint included measures such as legislating a transparent cocoa pricing policy, removing deductions that depress producer prices, and moving COCOBOD away from non-core businesses.
The government’s decision to reduce the producer price of cocoa has sparked widespread criticism, with many arguing that it will further exacerbate the sector’s challenges. Dr. Amin Adam emphasized that the government’s claim of strong economic management is contradicted by its decision to reduce farmers’ prices.
The cocoa sector is a crucial pillar of Ghana’s economy, and the current crisis has significant implications for the country’s export competitiveness and economic growth. The government’s response to the crisis will be closely watched by stakeholders.
The government has announced a revised producer price of GH¢2,587 per bag, down from GH¢3,625, alongside a forensic audit of COCOBOD and a US$500 million World Bank facility.
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Author: Korkor Anumu
