A new bill would be submitted to Parliament as part of measures to modernise the governance and financing of the cocoa sector, Finance Minister, Dr Cassiel Ato Forson, has said.
Presenting the Mid-Year Budget review in Parliament, Thursday, he said the COCOBOD bill will, among other things, establish a new financing framework for cocoa purchases and restore the long-term financial sustainability and operational efficiency of COCOBOD.
“The proposed legislation will introduce a new producer pricing mechanism that aligns producer prices with movements in international cocoa prices, exchange rate developments, and other relevant market conditions.
“The bill will also ensure that not less than 50 percent of cocoa beans produced in Ghana is processed here in Ghana,” he said.
“These reforms will place Ghana’s cocoa sector on a stronger financial footing, improve returns to cocoa farmers, ensure value addition, and position the industry for sustainable long-term growth.”
He said the bill, when passed, would repeal and replace the Ghana Cocoa Board Act, 1984 (PNDCL 81), in line with emerging trends trends in the sector.
Highlighting other initiatives, Dr Forson said the establishment of 50 Farmer Service Centres across the country had commenced, to improve farmers’ access to mechanisation and extension services.
“To support this initiative, Government has deposited GH¢551 million into an escrow account at the Bank of Ghana, to establish a Letter of Credit for the procurement of 1,840 units of agricultural machinery and equipment.
“These include tractors, trailers, power tillers, ploughs, cultivators, seed drills, sprayers, fertiliser spreaders and combine harvesters, which will significantly improve farm productivity, reduce production costs and enhance food security.” he said.
By Ernest Nutsugah