NPP Committed to Cocoa Farmers Welfare – Agric Minister

Deputy Agriculture Minister, Kennedy says the New Patriotic Party (NPP) government maintained the cocoa price to show its commitment in improving the welfare of the Ghanaian Cocoa Farmer.

He disclosed that the government could not be said to be insensitive to the Ghanaian Cocoa Farmer after having maintained the price of GH¢7600 per metric ton.

The deputy Agric minister said the general principle underlying the determination of the producer price is to pay the farmer a minimum price of 70% of the net FOB achieved in the world market.

Mr. Osei Nyarko addressing a news conference yesterday said noted: “Therefore, we don’t have any NPP or NDC formula but rather a universal formula which we wish to explain to the whole country in course of our delivery.”

The Deputy Minister was responding to claims by the Minority in Parliament that the government has grown insensitive to the plight of the cocoa farmer.

Mr. Osei Nyarko however stated that the ministry is shocked by the partisan nature of Minority Members of the Committee and their handling of such a critical national issue.

“Barely two months ago, the Ministry was in Parliament to discuss with the Select Committee on the challenges facing the Cocoa Sector and also seek their approval for the syndicated loan of $1.3 billion for the purchases of 2018/2019 crop season. At the said meeting the committee unanimously gave consent for the procurement of the USD1.3 Billion cocoa syndicated loan.”

The minister told journalists that “in 2016/17 when NDC was in government, the World Market Price was an average of $2,950 and using the then prevailing exchange rate of GH₵3.95 to the dollar would give you GH11,652.50. Given the price of exchange rate of 3.95, the total FOB value would be GHC9,904,625,00000.”

He added: “After the industry cost is then deducted before arriving at the Net FOB, 70% of which should be the least farmer price. In 2016/17 the Net FOB was GHC9,812.71, so percentage paid to the farmer was 77.45%”

Mr. Osei Nyarko stated that using the universal formula meant that the farmer was being paid 65.22% which was below the minimum 70% adding that “if we are to admit their inclusion of premium rate in the calculation at their ridiculous $350, it would mean NDC were paying the farmer 57.12%. This why, they instituted the sham stabilization fund account which was depleted by Opuni’s administration, before leaving office, including the balance on the 1.8-billion-dollar loan.”

“Meanwhile, it is worthy to note by all Ghanaians that, Ghana attract an average of $120 to $140 on main cocoa beans, whiles the light crop to substandard beans are sold at a discount of 20% – 30%. It is therefore misleading for the minority to deceive us by adding premium rate factor to the pricing of the producer price, for all our beans are not attracting the premium.”

The government has shot down the opposition National Democratic Congress’ (NDC) claims of over spending by the COCOBOD.”

In this year, the minister continued “cocoa price on the World Market sunk as low as $2,080 and at the exchange rate of GH₵4.40 whilst a ton is sold for GH₵9,152 and yet the Akufo- Addo Government keeping faith with the farmer maintained the 2016/17 price of GH₵475 per bag.”

He explained that this means that the government is paid 83%% to the cocoa farmer indicating that this confirms the Government’s consistency of ensuring that the universal formula of paying a minimum of 70% is preserved.

“In the current year for which they are making these outrageous statements, the World Market Price is $2,200 which translates into GH₵10,560 at the exchange rate of GH₵4.8.”

Beyond the tussle over the cocoa pricing, Mr. Osei Nyarko denied claims of over spending by the COCOBOD.

He stated that in fact, the Chief Executive of COCOBOD is receiving 30% less salary than what his predecessor, the embattled Stephen Opuni received under the erstwhile NDC government.

Mr. Osei Nyarko said that in fact, the Chief Executive of COCOBOD is receiving 30% less salary than what his predecessor, the embattled Stephen Opuni received under the erstwhile NDC government.