The Institute of Economic Research and Public Policy (IERPP) has called on the Mahama administration to take urgent and decisive action to stabilise Ghana’s cocoa sector, warning that the industry could face collapse if its current challenges persist.

In a statement issued by its Executive Director, Professor Isaac Boadi, and copied to media houses, the policy think tank said the cocoa industry is nearing a critical point and requires both immediate intervention and long-term reforms.

“The challenges being witnessed in the cocoa industry need urgent attention. The sector also requires long-term measures to forestall a possible collapse. Government must be up and doing with lasting solutions,” he stated.

Professor Boadi noted that COCOBOD’s financial difficulties have contributed to delays in paying cocoa farmers, leading to growing discontent among producers. He stressed the need to review the existing funding and payment structure to prevent recurring crises.

“COCOBOD is financially handicapped. This accounts for the recent agitation by cocoa farmers who are waiting to be paid for bags of cocoa sold to the government. To avoid this in the foreseeable future, a new funding and payment model must be adopted,” he explained.

He warned that continued delays in payments could have far-reaching consequences for the sector and the broader economy.

“If cocoa farmers continue to agitate over government’s inability to pay them on time, the consequential effects will be dire,” he cautioned.

According to him, some farmers have threatened to abandon cocoa farming altogether and sell their lands to illegal miners engaged in galamsey activities if their concerns remain unresolved. He described this development as a significant national risk.

“Several cocoa farmers have threatened to sell their cocoa farms to galamsey operators if the current challenges are not addressed. That poses a greater danger to the country. Cocoa production will decrease considerably, foreign exchange earnings will be adversely impacted, and the cost to our environment would be unimaginable,” he stressed.

Professor Boadi concluded by urging the government to urgently consult stakeholders and industry experts to develop sustainable solutions to the sector’s challenges.

“IERPP implores the government, as a matter of urgency, to engage stakeholders and experts in the industry with a view to finding lasting solutions to the myriad challenges facing the cocoa sector,” he said.