The Eastern Regional Chapter of the ruling New Patriotic Pary, NPP has lashed the opposition National Democratic Congress, (NDC's) Propaganda against the increment of the Cocoa price by the government.

A few days ago, the Government announced a new price for cocoa. The price of a bag of cocoa was increased from the September 2023 price of Ghana 1,308 to Ghc2,070.

However, the NDC in a move to deceive the populace, has come out with outright fabrications and propaganda about the cocoa price increment.

According to the NDC, Cocoa prices in the international market have hit all-time high today so the government should have given much higher prices to Cocoa farmers.

In a bit to respond to the falsehood, the Eastern Regional Communication Director of NPP, Evans Osei Yeboah in a statement noted "This should simply tell the NDC that we don’t sell our Cocoa at SPOT price or the prevailing or current prices on the international market. Differently put, Ghana doesn’t wait for the Cocoa season to commence before it sells its Cocoa. So Ghana never sells Cocoa at today’s price seen on the international market".

According to him, "Put in layman's terms, Ghana doesn’t wait for the farmers to harvest the cocoa beans before we carry the cocoa beans to the market and sell it like how our mothers make sales of tomatoes, onions etc. on Mokola market"

He explained that, "Ghana’s Cocoa trading has always been on the derivatives market where we use futures/ forward contracts to sell our cocoa beans yet to be harvested by the farmers. Futures/forwards are financial instruments that allow two parties to trade an asset or commodity at a specified price on a future date"

"In simple terms, the futures/forward contract Ghana uses to trade Cocoa allow us to sign a contract with investors on the terms that the investors will buy our Cocoa at an agreed price on a future date" he added.

The statement continues, "Before the season starts, Ghana meets investors on the international market and signs agreements (futures/forward contracts) with them with the terms that we will sell our cocoa beans to them at say $2,200 per metric ton (average terminal market price) when the cocoa farmers harvest the beans in future".

"Let me hasten to add that under this contract, monies do not exchange hands. In other words, the investors have agreed to buy our cocoa beans but they won’t make any upfront payments to Ghana. Payments will only be made upon receipt of the Cocoa," he said.

He further added, 'How the forward or if you like futures contracts Ghana signed with the investors will be used as collateral to secure say $1.13 billion syndicated loan with international banks to finance purchases for the upcoming season".

"Upon receipt of the syndicated loan, COCOBOD will subsequently purchase the cocoa beans from our farmers and ship them to the investors whom we had signed futures/ forward contracts with. When the investors receive the Cocoa, they now make payment (the agreed price) to the international banks that Ghana took the syndicated loan from" he noted.

"This trading arrangement enables COCOBOD to have cash readily available to purchase cocoa beans immediately after it’s harvested by the farmers. In essence, farmers are on the clock because there is a ready market to buy their produce with cash and that will avert losses from rotten cocoa beans and prolonged sales" he noted.

He further stated the entire supply chain is oiled at every point in time, with this arrangement, and that benefits the cocoa farmer, adding that any attempt by Empty NDC communicators to confuse themselves and unsuspecting Ghanaians with SPOT sales is not only lame and scruffy but humiliating.

He praised the Akufo-Addo-led government for the increment of the Cocoa price.

"The NPP in the eastern region on behalf of cocoa farmers in the region, appreciate the NPP government led by President Akufu-Addo and the next President of Ghana, Dr. Alhaji Mahamudu Bawumia. We would want to also single out the Minister of Food and Agriculture, Hon. Bryan Acheampong for commendation'.

"This good news has resonated with cocoa farmers and Ghanaians in general have been satisfied, praising the government" the statement underscored.