.The Minority Caucus in Parliament has accused the government of short-changing cocoa farmers following the announcement of a reduction in the cocoa producer price from GHC 51,660 per tonne to GHC 41,392 per tonne.
The caucus has therefore urged the government to relieve the Chief Executive Officer of COCOBOD, Dr Randy Abbey, of his position and absorb the cost pressures in the cocoa sector rather than pass them on to farmers.
It also called on the government to restore the producer price to the previous GHC 51,660 per tonne before the new cut was announced.
Addressing a press conference in Parliament yesterday, the Member of Parliament (MP) for Karaga, Dr Mohammed Amin Adam, said the Minority expected the government to provide a bailout to COCOBOD instead of reducing the price paid to farmers, especially at a time when it claimed the economy was performing better.
“An economy that is better managed cannot pay cocoa farmers and reduces the producer price of cocoa.
And so Ghanaians can see the narrative that the National Democratic Congress (NDC) brought to them about the previous NPP government as having badly managed the economy,” Dr Adam said.
He argued that the current crisis in the cocoa sector stemmed from the government’s failure to implement the COCOBOD turnaround strategy inherited from the previous New Patriotic Party (NPP) administration, which had been developed in consultation with the International Monetary Fund (IMF).
“I heard that the Minister of Finance is directing to move the cost of cocoa roads to the Ministry of Roads and Highways.
This measure was in the turnaround strategy that we handed over to the NDC government,” Dr Adam observed.
He further cited the absence of legislation to establish a transparent pricing policy, failure to reduce cost items and procurement expenses, and delays in implementing reforms as contributory factors to the sector’s difficulties.
According to him, the NDC government did not need to announce a new restructuring strategy because the previous administration had already put the necessary measures in place before leaving office.
Dr Adam also contended that the government’s “over valuation” of the economy had weakened export competitiveness, including cocoa exports on the global market, and undermined domestic production of goods and services.
For his part, the MP for Ofoase Ayirebi, Mr Kojo Oppong Nkrumah, said the government did not require an emergency Cabinet meeting to decide how to pay cocoa farmers.
He argued that directing COCOBOD to immediately pay farmers created the impression that the board had the funds readily available.
“What the government should be doing specifically is instructing that emergency liquidity assistance should be released to COCOBOD to pay the farmers,” Mr Nkrumah said.
He added that the resetting of COCOBOD’s cocoa trading programme by the current management and the injection of foreign exchange into the economy were the two main causes of the crisis in the sector.
“This action to announce a 28 per cent reduction in the production price of cocoa amounts to a haircut of about 28 per cent on close to one million cocoa farmers,” Mr Nkrumah stated.
He warned that the price cut could discourage young people from entering the cocoa sector, adding that the Minority would not hesitate to join farmers if they decided to protest.
BY BENJAMIN ARCTON – TETTEY